February 2, 2023

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GBPUSD reverses lower and looks toward the swing low area for the week

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Narrowest trading range since April 2019

The GBPUSD has reversed lower today after the run to the upside started on Wednesday fizzled out after breaking back below the Monday to Wednesday swing area between 1.3934 to 1.39386. 

Narrowest trading range since April 2019

The break higher above the higher swing area failed, and the subsequent run away from the 100/200 hour MA (after retesting the swing area above) has now pushed the price toward the next key target at the swing lows from Monday Tuesday and Wednesday between 1.28577 and 1.28616.  A move below that level would target the 50% retracement of the range since April 12 at 1.38383 (PS. that is the midpoint of the month trading range as well).

The low to high trading range for the week is only 118 pips. How does that compare to history? Back in the week of April 7, 2019, the range was 108 pips. There was a another low range of 123 pips in November 2019. The lowest range in 2020 was 133 pips. So there is room to roam and extend on the last trading day of the month. Be aware.

If support does hold against the lower swing area, a run up back toward the 100/200 hour moving average cannot be ruled out. Once again it is Friday. It is month-end as a result, there can be flows that influence price action today. However the sellers currently remain in control with key support below.

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