Swing between 1.3996 to 1.4016
The GBPUSD has moved down to test a swing area between 1.39968 and 1.40167. The low price just reached 1.39975 and bounced back above the swing area. The 38.2% retracement of the move up from the April low comes in at 1.40273. The low price from yesterday’s trade was at 1.40335. That area between 1.40273 at 1.40335 is now close risk level on a rebound higher. Stay below keeps the sellers firmly in control.
On the downside a break of the swing area would have traders targeting the 50% of the same move up from the April low at 1.39587. Below that is the 100 day moving average at 1.39323. The price has not closed below its 100 day moving average since the end of June 2020. In April, the price dipped below that moving average line but could not closed below the level. There also other intraday dips in early November 2020 (for a single day), and at the end of September 20 for 4 consecutive days (no closes below the MA line).