GBPUSD is trading at a new session low at 1.1496, and in the process has tested a former high from October near this level. This cap was breached last Wednesday and retested lower on Friday (see red circles numbered 12-15 in the chart above).
Moving below the level – and staying below – would then target a swing zone low down to 1.14595. So far, dip buyers are leaning against the risk definition level (stops below?). Current prices are back to 1.1510 as I type.
Drilling on the hourly chart below, if the support level is broken and traders will look to the 38.2% retracement of the upside from the October 21 low at 1.1421. Below that, the rise in the 200 hourly moving averages at 1.14032 will be seen.
On the upside, the rising 100 hourly moving average (blue line in the chart below) at 1.1552 should be broken to give buyers more comfort and control. Earlier today, the price fell below this moving average level after trying to hold support against it. The price was able to stay below the moving average for the past 3 hours of trading, giving sellers intraday control with the target at 1.1495.
A battle is therefore underway with support near 1.1495 and upside resistance near the 100 hourly moving average at 1.1552.