GBPUSD trades to a new session low. Runs from 100 hour MA

Still above the low from last week though

The GBPUSD is running to the downside and making new session lows as I type. The pair cracked back below the 100 hour MA (at 1.37499 currently) in the late London morning session, and has been able to find sellers near that MA on retests. The last two hourly bars, are seeing more momentum to the downside. 

Still above the low from last week though The 100 hour MA is also in a swing area better seen on the 4-hour chart (see chart below) between 1.3745 to 1.3758. 

Looking at the 4-hour chart below, that swing area was home to swing highs going back to Jan/Feb earlier this year.  On February 9, the price moved above that area and raced to the 2021 high at 1.4240. The move back below that area today, is more bearish for the pair.  Stay below keeps the sellers in control. 
GBPUSD on the 4-hour chart

TRADING EDUCATION.  

Old swing areas can come back and become important weeks later. Clearly, the area was a strong ceiling until broken in early February.  The pair did fall below the level earlier this month and did run about 70 pips before rebounding back above.   The high price yesterday stalled near the 50% and falling 100 bar MA.  Selling near there was a bearish tilt, which DID see more follow through downside today (with limited risk).

Sellers are now making a play below the swing area for the 2nd time this month.  Traders will put faith in that area as bias defining and risk defining areas.  Stay below keeps the bias to the downside, and also defines risk for shorts in case it does not do what is expected.    

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