GBPUSD moves down to test swing area going back to August/September | Forexlive

The GBPUSD moved strongly to the upside last week and in the process moved above the 100 day MA. That MA is currently at 1.1654. The move above that MA was the first since February 2022. That level will be a key barometer going forward. Move back below would be disappointing for the “break buyers”.

The high price extended to 1.1854. Looking at the 4-hour chart above, there is a swing area between 1.1865 to 1.9000. The high price on Friday found sellers ahead of that target. Today with the dollar moving back higher, the rotation is lower. Conversely, on a move back higher, getting above 1.9000 would open the door to the upside for the pair. Looking at the daily chart below, the 50% midpoint of the 2022 trading range comes in at 1.20499. That is not out of the question.

On the downside, the pair is testing – and has now dipped below – a swing area between 1.17173 to 1.17588. The low just reached 1.1709 while I type, but has already bounced back to 1.1726. On more downside momentum, the 100 day MA would be targeted. Joining that MA is the 38.2% of the move up from the November 9 low at 1.1655 level (see the 4-hour chart at the top of the post). ALSO the 38.2% of the 2022 range is at 1.16492 – just below those levels).

Overall, buyers made a play last week, but ran into some resistance. Nevertheless, getting above the 100 day MA (and the 38.2% on the daily chart) is a step in the positive direction for a change in 2022 for this currency pair. The question now is can that momentum be sustained. The technical levels are in place to guide the way (one way or the other).