The 1.4152 to 1.41659 area eyed as close resistance now
The GBPUSD moved up to a high yesterday 1.42196. That was about 20 pips short of the high for 2021 at 1.4240 (from February 24).
Today the GBPUSD pair could only reach a high around 1.4200. The London session has seen a slow grind to the downside. The low price has reached a intraday low of 1.4141.
On the way to the downside, the price has now moved below a key swing area on the hourly chart between 1.41524 and 1.41659 (see red numbered circles).
However, the price decline did stall just ahead of the 38.2% retracement of the last leg higher from the May 13 low. That level comes in at 1.41376.
Going forward today, with the price between the high of the swing area at 1.41659 and the 38.2% retracement below at 1.41376, traders will be eyeing those levels for bias clues.
Stay below the 1.41659 tilts the bias intraday more to the downside. The buyers had their shot. They took the price up toward the 2021 high, but fell short. They also failed above the swing area.
Having said that, the sellers need to prove that they could get below the 38.2% retracement of the last move higher (that is a minimum to take more control). Another key target to get to and through would be the rising 100 hour moving average at 1.41193 and the rising 200 hour moving average near 1.4100 currently. A bearish move needs to breach those levels as well if the bias is to gain more downside potential. Having said that, I would expect some support buyers near those moving average levels on the first look.