The GBPUSD is back below its 100 day moving average at 1.34748 after briefly moving above the level yesterday and again earlier today. That inability to stay above the key barometer is giving sellers a little more confidence and shifting the focus back to the downside.
The next downside target comes in at the 100 hour MA at 1.34522. Just below that is the lower end of a key swing area at 1.3446 — an area that has been tested multiple times over the last month (see red circles on the chart). That zone has consistently attracted buyers and sellers. If sellers are to take more control on a break below and stay below, the downside can be further explored once agains.
Below that swing area, the 200 hour MA at 1.34212 becomes the next major target. A break below that MA would increase the bearish bias and have traders looking toward deeper retracement levels.
For sellers, the risk is that today’s move back below the 100 day MA once again turns into another failed break lower. The pair has spent much of the last several sessions rotating around these moving averages without strong momentum extending toward the next upside target at 1.35318. If buyers can push the price back above the 100 day MA and hold it, the sellers could quickly lose control with traders then looking back toward the highs from yesterday (and earlier today) at 1.3507 before the 1.35318 level.
The technical battle remains centered around the cluster of moving averages and the swing area support
