The swing area at 1.3801 to 1.38083
The GBPUSD has spent most of the last 17 trading days below the 50% of the move down since the Feb 24 high and a topside swing area between 1.3998 and 1.4009. The high from last week stalled in that area and fell.
The price on Friday, saw more selling below the 100 and 200 hour MAs (currently at 1.3901 and 1.3911 respectively).
Today, we are seeing down, up and down price action. The price is lower on the day currently and is approaching the earlier low for the day at 1.38265. The price is currently trading at 1.3833.
The next target low comes in at a swing low area between 1.3801 to 1.38083 area. That is home to swing lows from March 8, March 9 and again at the lows from last week. That swing area is ahead of the March swing low at 1.37782. Move below that low and it opens up the downside for the pair.
On the topside now, watch the 1.38447 to 1.38558 area. That area was a swing area – before Friday and today that is (see red numbered circles). The last two days has seen choppy price action above and below the level. However, if the sellers are to stay in control, I still want to see that area stall any rallies (risk for shorts).