The GBPUSD is under pressure after failing to hold gains above the 1.3532 to 1.3541 resistance level for a second time. Sellers stepped in, leading to a reversal that has pushed the pair back toward a key technical zone.
Immediate support is found near the 100-hour moving average at 1.3495 and the swing area around 1.3461–1.34729. This zone will be critical for short-term direction—holding above keeps the bullish bias intact, but a break below opens the door for further downside.
Below this support, traders will be eyeing the 38.2% retracement level of the mid-May move up, which comes in at 1.3461, followed by the 50% level at 1.3421. That level also corresponds roughly with the rising 200 hour MA (green line on the chart above).
This article was written by Greg Michalowski at www.forexlive.com.
