Trades at session lows
The GBPUSD after rising for 10 consecutive days, is working on it’s third day down. Having said that, the move to the downside over the 3 days has been modest. Today’s move to the downside today has been the biggest day with the pair currently down about -80 pips as momentum lower increases. ON the last move the price has dipped below the swing area defined by swing lows and highs between 1.2994 to 1.3012. The 50% of the move up from the July 28 swing low has also been broken at 1.30034.
The break lower will now target the swing area at 1.2952 and the rising 200 hour MA at 1.29417. The price has not been below the 200 hour MA since July 20.
RISK: Close risk now that the price has fallen below the swing area is the high of the swing area at 1.3012. A more conservative risk is 100 hour MA at 1.30558. Earlier this day, the price fell below that level after testing the swing area in the 1.3104-10 area. Key hold there and the price decline started for the day.