The GBPUSD saw a remarkable surge during the European morning session, spurred by a key technical shift that propelled the price beyond the 200-hour moving average . It's worth recalling from last Wednesday when the price briefly moved above this moving average, only to fall swiftly (as represented by the green line in the chart). This unexpected downturn steered the pair lower, bottoming out at 1.23072 for the week, before initiating a rebound.
On Friday, and again in the earlier part of today, the price navigated above its falling 100-hour moving average (depicted as the blue line in the chart). These initial upward breaks met with resistance. However, buyers persevered, eventually managing to elevate the price above both the 100 and 200-hour moving averages. This shift caused the sellers to transition into buyers.
The ensuing upward trajectory approached a swing area between 1.2435 and 1.24454 (identified by red numbered circles in the chart). Also within close proximity was the 38.2% retracement of the downward trend from the May 11 high, situated at 1.24493. The day's high peaked at 1.24462, at which point sellers intervened to halt the rally.
The New York session has been characterized by consistent selling. The price has subsequently dipped below the 200-hour moving average once again, and is currently testing a lower swing area between 1.2386 and 1.2397. If the price can maintain a position below 1.23974, sellers regain control and traders' attention will likely revert to the 100-hour moving average (green line).
See earlier video. The sellers are winning: