FLASH NEWS
FLASH NEWS
Sunday, January 24, 2021

GBPUSD falls to new session lows. Seems towards 50% retracement

Value development away from 100/200 hour MA

Final week, the GBPUSD traded decrease however in a up and down vary for many of the week (see pink field within the hourly chart beneath).  From Monday to Friday, the worth traded above and beneath the 100 and 200 hour MAs (blue and inexperienced traces). The lows stalled in a  1.3531 to1 1.3544 vary (on Monday, Wednesday, Thursday and Friday).  The worth on Friday closed beneath the 100 and 200 hour MAs.

Price trend away from 100/200 hour MA

In the present day, the early value motion took the worth beneath the lows from final week AND a decrease swing line going again to December 24 time-frame at 1.35212.  The 38.2% of the transfer up from the December 21 low has additionally been breached at 1.35057.  The low reached 1.34576 to this point.

The subsequent draw back goal is down at 1.34448.  That’s the 50% retracement of the transfer up from December 21.   

Shut danger for sellers is now the 38.2% at 1.35057. Above that, the swing space at 1.35212-347 can be eyed (yellow space). 

Drilling to the 5-minute chart, the falling 100 bar MA at 1.34907 and a downward sloping development line close to the identical stage is an in depth hurdle that if damaged to the upside, might result in some corrective upside probing.  Hold that space in thoughts.  Failure to down that (after which get above the falling 200 bar MA or inexperienced line) and the sellers are in agency management (see chart beneath). 

The GBPUSD on the 5 minute chart

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