The GBPUSD is under pressure once again, with sellers now pushing the pair toward a critical test of the 200-hour moving average (green line), currently near 1.32527. This level marks a key battleground for short-term control. Earlier in the Asian Pacific session the price low fell but stalled at that MA level. That increased the levels importance going forward. Moving below would be more bearish technically.
After the early fall today, the bounce back rally failed to sustain momentum above the 100-hour moving average (blue line near 1.3324). A closer risk level would be near the highs from last week at 1.3293. That zone is now a clear risk area for sellers, and any move back above it could weaken the bearish case.
The current downside push now targets a cluster of support levels:
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1.32527: 200-hour moving average (first key test)
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1.32017: A swing area defined by prior resistance-turned-support
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1.31497: The 38.2 retracement of the move up from the April low
Bottom line:
Sellers are probing the 200-hour MA for a potential shift in momentum. Staying below 1.32922 is close risk, followed by the 100 hour MA at 1.33242.
This article was written by Greg Michalowski at www.forexlive.com.
