The GBPUSD has been stepped lower in trading today, with the price sliding back below its 200 hour moving average in the process (green line currently at 1.36315). After breaking that level, it also cracked below a swing area (old ceiling) between 1.35978 and 1.3603. The price is also been able to stay below those levels through the New York session.
However, after bottoming ahead of the next support target at 1.3560 and further lower at 1.35464 where the 100 day MA is found (the low could only reach 1.3572), the price has moved back higher and looks to retest the broken “old ceiling” swing area.
Sellers looking for more downside, will look at this level as a close resistance. Stay below and a rotation back down with a retest of the 100 day moving average would be a likely trading scenario.
Move back above however and the 1.36188 level (swing low from January 12 and earlier today, and downward sloping trendline) would be targeted. Get above that and traders will look toward the 200 hour moving average at 1.36315.
So sellers have a shot here to put a lid against the old ceiling. Stay below, and the downside move can resume .