The 1.3013 -13 area is a swing area that is starting to be tested
The GBPUSD is trading at a new session low and in the process is starting to test a swing area in the 1.3013-1.3013 area (just traded down to 1.3013 level).
The run lower today has tilted more bearishly to the downside.
- The 200 hour MA, 50% and swing area stalled the rally at the day’s highs (green circles)
- The price fell below a trend line (see red circles)
- The price retested that broken trend line and reversed lower
What may give traders cause for pause potentially, is the pair is testing a swing area at the 1.3000-13 area (see blue circles). Since March 12 (not shown), there have been a number of swing lows in that area. Adminttedly, the price did move below that level last Friday, but after holding at the 200 day MA (at 1.2976), the price rebounded higher and reestablished the level as support (see blue circles 4 and 5). Not shown in the chart above, but the price reached a new session low and just bounced off the 1.3013 level, and trade at 1.3021 currently. So the top of the support target has held on the first test.
SUMMARY: The sellers are more in control, but there is a cause for pause against that swing area. That may lead to some profit taking/a bounce, with stops on a break. On a break, the 200 day MA at 1.2976 is another KEY level.