TECHNICAL ANALYSIS

GBPUSD rebounds in 1.2200 support area


Staying below the 1.2250 level allows sellers to stay in control.

The GBPUSD moved higher in the NY session, but found sellers before its 100 hour MA decline (blue line currently at 1.2241 and near a downward trending trend line on the hourly chart).

Staying below the 1.2250 level allows sellers to stay in control.

The next dip brought the pair to the lowest point of the day at 1.2250. It was close to the low of the swing of April 21 at 1.22464. The 1.2246-50 zone now represents a close risk for sellers. Stay below keeps the seller under control. Move over the muddy water on the missed break.

On the downside, the low price has now stagnated at 1.2209. It was above a low swing dating back to April 3 at 1.22024 and at natural support 1.2200. If sellers are to maintain firm control, consideration will be given to obtaining and staying below the 1.2200 level. If so, the April 7 low swing would be targeted at 1.22619.

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