Swing area at 1.24047-14 defines a ceiling area for the GBPUSD
The GBPUSD spiked higher after the BOE decision earlier today. The move to the upside was able to extend above the most recent trend line on the hourly chart below but stalled right around a swing area at 1.24047 to 1.2414 area. The high price stalled at 1.2416 and backed off.
The move lower has now reached 1.2324 in the current hourly bar. In the process the price moved below the close price from yesterday at 1.2340. We currently trade at 1.2346 up marginally on the day.
The Asian session low came in at 1.2308. There is swing low targets just below the 1.2300 level (at 1.2297 – 99). Those are the next targets on the downside. Below that it would be the April 21 swing low at 1.22465.
The pair trades off lows and off highs. But what we know is if I were to characterize a close ceiling for the GBPUSD, it would be at 1.24047-14 area. The 100 hour moving averages moving toward that area as well which should further define the bias. Stay below the ceiling/moving average and the bears are more in control. There is closer resistance on the hourly chart and the 1.2385 – 93 area. The old trendline cuts across around that area as well.