GBPUSD falls to new session low


GBPUSD drops below its 100 hourly moving average

GBPUSD broke above its 100 hourly moving average (blue line in the chart above) for the first time since April 21 on Friday, and closed just off the moving average level (blue line in the chart above). above). This moving average represents a barometer for short-term buyers and sellers.

In today’s trade, the price is trading above and below this moving average level, flipping the bias from bullish to bearish and from bullish to bearish again.

The past three hours or so have seen a move back below the moving average level, and we are seeing an acceleration in the downtrend. The 100-hour moving average sits at 1.25447. The low price has just reached 1.25047. The current price is trading at 1.2511. It would now be necessary to move back above the 100 hourly moving average to increase the bullish bias.

Going back to last Wednesday, Thursday and Friday, there are intraday swing levels between 1.24905 and 1.25022 (see the red numbered circles in the chart above). A move below this zone would have traders looking to last week’s extreme, which saw the price drop to 1.24103. It was the lowest level since July 2020.

Looking more broadly at the daily chart below, the 61.8% retracement of the upside from the 2020 low comes to 1.24936. This level lies between the swing zone of the hourly chart, which increases the importance of this zone from a technical point of view. A move below should lead to more downside pressure.

GBPUSD

GBPUSD traded at the lowest level since July 2020 last week


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