GBPUSD trades to a new session low

Runs lower from the 200 hour MA

The GBPUSD is trading to a new session low as the New York session lows toward the end of day. The low just reached 1.3880. That was just short of the top of a swing area between 1.38616 and 1.38765 (the swing area goes back to February 10 – see red circles in the chart below).

Runs lower from the 200 hour MA

Earlier today the pair tested its 200 hour moving average at 1.40117. However, Powell’s comments did not help the interest rate market or the stock market, and the dollar started to rebound across the board. Getting below the 100 hour moving average and an upward sloping trendline for the major targets to get to and through. That shifted the bias back firmly in the direction of the sellers/bears. With the swing area now approached (and the low from Tuesday trade), the market has a decision to make. Stay above and we could see a further rebound. Move below and traders will start to look toward the February lows.
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By Jonathan Prop

Jonathan Prop is an independent financial advisor. He has been working in finance for the last 20 years. After retiring early in his 40s, Jonathan decided to help others get to grip with financial markets, particularly his area of expertise - forex!

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