Falls below swing area at 1.23827-917
The GBPUSD continues it’s fall to the downside, helped now by stronger dollar buying. The pair started thed day testing a bunch of resistance defined by a topside trend line, the 100 hour MA/200 hour MA and 100 day MA all clustered around 1.2463 to 1.2479. The sellers were able to keep a lid on the pair and sellers took over.
The selling continued through breaks of lower trendlines on the hourly chart and a swing area at 1.23827 to 1.23917 (see yellow area and read numbered circles). That area is now close risk for sellers looking for more downside in the pair. Stay below is more bearish.
The next target for the pair comes in at the 38.2% retracement at the 1.23429 level. That is of the move up from the September low. Although the last few days have seen a more bearish bias and the price is back below the 100 day MA and the 100 and 200 hour MAs, getting below the 38.2% retracement is needed to give more credence to the bear’s run lower.
Taking a broader look at the daily chart below, the pairs run lower today is trying to move away from the 100 day MA. Recall, that the price of the pair has now traded above and below the 100 day moving average for seven consecutive days. Last week, the buyers had their shot to move away to the upside but after finally closing above on Thursday and moving to a new high on Friday (that stalled at the mid July high), the pair reversed and spoiled the bulls run.