Technical Analysis

GBPUSD reenters an old swing area from September

Moves above swing area between 1.3725 to 1.3733

The GBPUSD traded within a up and down range from the end of August to September 20 (see the red box in the chart below). The  low of that range found support buyers near the 1.3725 to 1.3733 area.  

After breaking below that red box, on September 20 there was one move back above on September 23. That move failed. Subsequently, the market traders started to reuse the area as resistance (see red numbered circles three and four in the chart above). Holding against that level gave the sellers the go-ahead to push lower toward the end of September into early October. Since then, there has been a rebound.

Yesterday, the price moved up to test the upper end of that swing area at 1.3733 and held resistance.

Today, the price has been able to extend above.  In the US session, the low did find support against the area and has pushed back to the upside. Holding that swing area is a bullish clue. Going forward as long as the price remains above, the buyers are still more in control.

The price is currently back up testing another swing area between 1.3750 and 1.37636. The high prices reached 1.37588 between those levels. On a move above 1.37636, it would open the door for yet another run toward another swing area near the 1.3800 level.

Buyers are in control. Stay above 1.3725 and they continue to win. 

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