The GBPUSD has reversed its earlier gains, and now trades to a new session lows. In the process, the pair is looking to test the lows from the last two weeks. On Friday, April 8, the low price reached 1.29818. The GBPUSD price is currently just above that level at 1.2984. Below that the swing low from last Wednesday at 1.2971 represents the lowest level since November 5, 2020. A break below that level opens up the door for further downside momentum. On a break, the swing low levels would become resistance.
The main technical catalyst for the move to the downside today was the GBPUSDs resistance at session highs against its falling 200 hour moving average (green line in the chart above). Risk could be defined and limited against the level.
The run to the upside sniffed the moving average line (green line), but after the price action saw sellers against the level, the buying dried up, and the sellers took back control - pushing the price down in the process.
What now?
Low risk dip buyers could try to limit the decline by buying against the swing lows over the last two weeks. However, a break below the lows should not be faded (on a break, the lows from the last two weeks will turn from support and resistance). Not expect buyers turned to sellers on a move below the 1.2971 level.
