GBPUSD trades to a new session low. Tests swing area. | Forexlive

The GBPUSD has moved to a new session low at 1.23526. The move lower today has taken the price of the pair into a swing area between 1.2343 and 1.23603 (see red numbered circles). The low price has reached 1.23576. The price last tested that area last Monday and found support buyers.

The move to the upside last week extended above the April 4 high price at 1.25240 on its way to a new cycle high 1.25462 (highest level since June 2022 – not shown), but failed. Friday’s sharp selloff took the price back below the converged 100 and 200 hour moving averages (blue and green lines), and down to test a upward sloping trendline.

In trading today, the price traded above and below that trendline with lower lows and higher highs. The last 4-5 hours has seen increased momentum to the downside toward the lower swing area target. If sellers are to take more control, getting below 1.2343 would open the door for a rotation toward 1.2300 (natural support) followed by a target to another swing area between 1.2260 and 1.2282. The 38.2% retracement of the move up from the March low cuts across near the bottom of that a swing area at 1.22619.