GBPUSD holds swing area resistance and 100 hour MA at session highs. What next?

The GBP/USD pair moved higher from last week’s closing level near 1.2530 but encountered strong resistance around a key swing area between 1.2596 and 1.2614. After testing this zone, buyers gave way to sellers.

In the early European session, the price decline paused just ahead of the 1.2530 level, prompting another attempt to the upside. However, sellers once again emerged near the top of the swing area. This level was further reinforced by the falling 100-hour moving average (MA), adding to its significance. Together, the swing area high and the 100-hour MA at 1.2614 have become critical resistance levels, acting as a key barometer for both buyers and sellers.

Outlook for Sellers

As long as the price remains below 1.2614, sellers retain control. A continued downside move could target:

• Friday’s closing level: 1.2530
• Last week’s low: 1.2486

A break below these levels would open the door for further downside probing.

Outlook for Buyers

For buyers to regain momentum, they must push the price above 1.2614 and the falling 100-hour MA. A sustained break above these levels would likely shift the bias to the upside, at least in the short term, with the falling 200-hour MA at 1.26407 as another target to get to and through.. Until then, buyers remain on the back foot, and the sellers are firmly in control.

This article was written by Greg Michalowski at www.forexlive.com.