GBPUSD this week fell below the 100 day MA on Monday and stayed below on Tuesday and Wednesday. Yesterday the price continued the move lower and pushed below the 50% midpoint of the move up from 2021 low reached in November at 1.34533 (see daily chart above).
The pairs low yesterday reached 1.33574. That was 5 pips off the low of a swing area between 1.33524 and 1.33757. Today the low was also in that swing area, but above the low from yesterday at 1.33645. The price has pushed higher. That is the good news for the dip buyers.
The not so good news (at least for now) for the buyers comes from the price action on the hourly chart.
Looking at it, the pair is facing a Key topside resistance from the swing lows from Monday and Tuesday between 1.34345 to 1.3439. The 50% of the move down from the high on Wednesday comes in at 1.34407.
When the price fell below that swing area yesterday, the sellers gave another shove lower pushing the pair to the lows (and to the aforementioned support on the daily chart).
So the price is higher today after holding the support target on the downside. However, there is overhead resistance looming. It will take a move above the 1.34407 to give the buyers some further hope (and then the 100 hour MA after that). Absent that, and the sellers are still in control and the buyers are still hoping.
