GBPUSD trades to new lows. Close downside target at 1.29065

The GBPUSD has stalled near 1.29458, with price action forming a triple-top resistance around this level. This area has proven to be a key barrier although somewhat random (IMHO). Nevertheless, with the 3 tops now on the 4-hour chart above, a sustained break above it would be needed to open the door for further upside. A move above would target 1.3000 and then a swing area between 1.3044 to 1.3058.

On the downside, the first key support zone comes in at 1.28306 to 1.2843. A break below this level would shift momentum further bearish and giving buyers a cause for pause. It would bring the focus toward the 200-day moving average (MA) at 1.27896. If sellers gain control and push the price below the 200-day MA, further declines could be expected as buyers turn to sellers on the disappointment of the break.

From a technical perspective, the pair remains in bullish territory as long as it holds above 1.2830, but failure to break resistance at 1.29458 may encourage sellers to test downside levels.

Sellers are making a play, but they still have work to do.

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