The GBPUSD is trading to a new session low and in the process is also looking to test the low from Tuesday’s trading at 1.30808. A move below that level would have traders trading at the lowest level since November 5, 2020.
As outlined in an earlier post, the high today moved just above the high of a swing area off the daily chart between 1.3133 at 1.31868. The high price reached 1.31938 just seven or so pips above the upside before rotating back to the downside. Since breaking below the lower swing area extreme at 1.3133, the price has stayed below that level and wandered another 50 or so pips to the new low. The price just reached 1.30835.
What next?
Fall below the 1.30808 level and the door opens for more downside momentum.
For the risk, the 1.3100 level would be a close risk level for traders looking for more downside momentum. More conservative risk would be for a move back above the falling 100 hour MA. That MA is currently at 1.3147, but is losing about a pip and 1/2 each hour.