Support & Resistance

GBPUSD stretches to a new session low

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GBPUSD tests a low swing level.

The GBPUSD is stretching to a new session low for the day and in the process is testing the low of a swing area between 1.1459 and 1.1495.

The price of the GBPUSD has been trading above and below the higher of that swing area for the last 5 or so trading hours. However the last hourly bar is breaking to the downside, and looking toward the lower target.

A break below 1.14595 would have traders looking toward the 38.2% retracement of the move up from the October 21 low. That level comes in at 1.1421. Just below that level is the rising 200 hour moving average at 1.14089.

Last week, on Monday and Tuesday, the price of the GBPUSD tested the 200 hour moving average only to find buyers against the moving average. Holding gave the go-ahead for the buyers to push the price higher. On a retest, I would expect that buyers would step in against the level, on the first test, with stops on a break below.