The GBP/USD is trading to a renewed session high to test a swing area between 1.3521 and 1.35282.
That swing area arrives ahead of the extreme on December’s last trading day at 1.35496. At a high price from Friday, the pair reached the falling 100 days moving average.
On the broken overhead, the high from last week at 1.35491, followed by the 100 days moving average at 1.3556, were the targets. The initial target was broken at 1.35491. The second one was tested but seen sellers. The high price for the day gets 1.35557, right around the 100-day moving average.
The subsequent move back to the downside retested the swing’s low mentioned above in the space at 1.35213, which has also held.
So, the pair rings near the high, beyond the swing area below 1.35213 as the focus, but below the critical 100 days moving average past 1.3556. That appears to be the level in play as we head closer to the new trading day. A downward move would target the 100 hours moving average of 1.34975, pursued by the 200 hours moving average of 1.34590.
On the move higher, the pair will target the 38.2% retracement of the range after the June high at 1.35754, tracked by the swing high from November 9 at 1.3601. Get past that level, and a daily chart trend cuts across at 1.3624.
What Next?
The sellers have so far been capable of holding against the swing area. Usually, a level is broken, and a new high is made. However, it fails against resistance (100 day MA) and turns lower, reestablishing the lower swing area.
It will take a move beyond that swing area to raise the bullish bias with the 100 days moving average as a critical target.
