Support & Resistance

GBPUSD ekes out a new session low, but still remains above the next target

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GBPUSD test the lower swing level near 1.12109.

As the traders are exiting the building in the UK, the GBPUSD has traded to a new session low at 1.12132. That took out the prior low of 1.1220. The target near 1.12109 remains in place as does the slowly rising 200 hour moving average at 1.11821 (green line in the chart above). A move below each increases the bearish bias.

Earlier today, the price broke below a rising trend line on the hourly chart along with the rising 100 hour moving average (blue line in the chart above). The 100 hour moving average currently comes in at 1.12948 and is starting to flatten out. It would take a move above the 100 hour moving average to increase the bullish bias going forward.

Technically speaking, the buyers and sellers are in a neutral area between the moving average levels. However, sellers taking the price below the upward sloping trendline, below the 100 hour moving average, and the price being lower on the day have the buyers more on the defensive and the sellers holding the better hand. They have work to do to get below the aforementioned swing level and the 200 hour moving average.

If those levels cannot be broken, the sellers can easily turn back the buyers.

US yields remain a support for the US dollar . 10 year yield is just off the highs at 4.125% which is up 12.7 basis points. The 2 year yield is at 4.541% up 10.5 basis points.