GBPUSD stays below 1.3133 and tests 1.3100 level

The GBPUSD had moved into a support area between 1.3133 to 1.31865 area earlier today (see post here). I commented that moving below the low of the swing area would increase the bearish bias, and that is what happened.

The pair has moved down to a low near the 1.3100. The low price reached 1.3101 so far. A move below the natural support at 1.3100 would increase the bearish bias even more, and open up the downside for more probing..

Now that the swing area has been broken, sellers will now use it to lean against. That is, stay below 1.3186 is a risk defining level. Stay below keeps the sellers more control on the daily chart. A closer resistance target would be the low of the swing area at 1.3133 along with the 38.2% retracement of the move up from the March 20, 2020 low. That level comes in at 1.3164.

The most bearish scenario would be to stay below 1.3133.