Retracing back toward support….
The GBPUSD has moved to new session lows and in the process has moved toward support targets.
The first target comes in at 1.2209. That is the swing high from August 6th. The first test stalled the fall. We currently trade at 1.2224.
The next target on the downside on further weakness, is the rising 100 hour MA at 1.2209. Finally, the 1.21749 to 1.2190 area, is swing area that has been more of a ceiling for traders going back to July 30th (see red numbered circles). Move below that area and the shorts are back in the drivers seat.
Now intraday, sellers area more in control. The highs today (and on Friday) broke above the 200 bar MA on the 4-hour chart and failed. The price is lower on the day. The price is back below a topside trend line.
Not so bearish is we remain above the 100 hour MA and the swing levels.
What would weaken the sellers intrday?
Looking at the 5 minute chart, a topside trend line at 1.2234 (and moving lower), and the 100 bar MA on at 1.22395 (and moving lower) would need to be broken to change the intraday bias to something more bullish (muddies the bearish waters).