December 6, 2022

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GBPUSD continues to find support against swing area

2 min read

A swing area support comes in between 1.3886 and 1.38948

Yesterday, the GBPUSD fell below its 100 hour moving average (lower blue line on the chart below) on two separate occasions only to find support near a old swing area between 1.3886 and 1.38948 each time (the red numbered circles five and six).  

A swing area support comes in between 1.3886 and 1.38948

Today, a similar dynamic applied.  The price move below the 100 hour moving average, but stalled at the swing area on each of the two tests.  The last test just occurred in the early New York hours, and we are seeing a bounce back toward the 100 hour moving average currently at 1.39302.

Earlier this week, the highs tried to extend above its falling 200 hour moving average (green line) currently at 1.2949.  On Wednesday and Thursday, that moving average was broken, but was met with less than stellar upside momentum, and buyers quickly turned to sellers, pushing the price lower.  That 200 hour moving average is now converging with the 100 day moving average near 1.2947. 

Yesterday when the 100 day moving average is broken, selling intensified pushing the price down through the 100 hour moving average to the aforementioned swing area.

So overall from a technical perspective, the price for the GBPUSD is respecting the swing area on the downside.  On the topside, the 200 hour moving average has been more or less the upper extreme. With the 200 hour moving average moving lower toward the 100 day moving average, the support and resistance levels are converging.   

At some point there will be a break and hopefully one that comes with momentum.  In between the extremes sits the 100 hour MA which may act as a rudder/barometer for the intraday bias.  

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