GBPUSD settles between swing area support and resistance after run lower yesterday bounces

The  GBPUSD 
GBP/USD

The GBP/USD is the currency pair encompassing the United Kingdom’s currency, the British pound sterling (symbol £, code GBP), and the dollar of the United States of America (symbol $, code USD). The pair’s rate indicates how many US dollars are needed in order to purchase one British pound. For example, when the GBP/USD is trading at 1.5000, it means 1 pound is equivalent to 1.5 dollars. The GBP/USD is the fourth most traded currency pair on the forex exchange market, giving it ample liquidity and a low spread. Whilst the spreads of currency pairs vary from broker to broker, generally speaking, the GBP/USD often stays within the 1 pip to 3 pip spread range, making it a decent candidate for scalping. The GBP/USD pair, also informally known as “cable” (due to transatlantic cables being used to transmit its exchange rate via telegraph back in the 19th century) has a positive correlation with the EUR/USD, and a negative correlation with the USD/CHF. Trading the GBP/USDWhilst a lot of traders and even brokers will assert that the best time to trade the GBP/USD is during its most active hours during London and New York, doing so can be a double-edged sword due to the often-unpredictable nature of the pair. Its volatility also fluctuates often, and so what could be a profitable looking strategy one month, may not be so productive in later months. In addition, purely technical traders can really struggle to be consistent with this pair, (i.e. by ignoring fundamentals), due to the unique political nature of the United Kingdom. The recent drama surrounding Brexit has added another layer of uncertainty to this currency pair. With a smooth resolution not in the cards for the foreseeable future, it is clear the GBP/USD will be influenced by any developments and negotiations with the European Union.

The GBP/USD is the currency pair encompassing the United Kingdom’s currency, the British pound sterling (symbol £, code GBP), and the dollar of the United States of America (symbol $, code USD). The pair’s rate indicates how many US dollars are needed in order to purchase one British pound. For example, when the GBP/USD is trading at 1.5000, it means 1 pound is equivalent to 1.5 dollars. The GBP/USD is the fourth most traded currency pair on the forex exchange market, giving it ample liquidity and a low spread. Whilst the spreads of currency pairs vary from broker to broker, generally speaking, the GBP/USD often stays within the 1 pip to 3 pip spread range, making it a decent candidate for scalping. The GBP/USD pair, also informally known as “cable” (due to transatlantic cables being used to transmit its exchange rate via telegraph back in the 19th century) has a positive correlation with the EUR/USD, and a negative correlation with the USD/CHF. Trading the GBP/USDWhilst a lot of traders and even brokers will assert that the best time to trade the GBP/USD is during its most active hours during London and New York, doing so can be a double-edged sword due to the often-unpredictable nature of the pair. Its volatility also fluctuates often, and so what could be a profitable looking strategy one month, may not be so productive in later months. In addition, purely technical traders can really struggle to be consistent with this pair, (i.e. by ignoring fundamentals), due to the unique political nature of the United Kingdom. The recent drama surrounding Brexit has added another layer of uncertainty to this currency pair. With a smooth resolution not in the cards for the foreseeable future, it is clear the GBP/USD will be influenced by any developments and negotiations with the European Union.
Read this Term tumbled lower yesterday on the back of the flight into the USD and in the process reached a low of 1.3272. That low stalled within a swing area between 1.32726 and 1.3291 (see blue numbered circles) that defined and up and down range near the extremes from November and December 2021 (see red shaded area).

The subsequent run to the upside took the price above a second swing area between 1.3557 and 1.3377 (see red numbered circles), and today up to a third swing area between 1.3430 and 1.3439.

The price action has settled today between the last two (higher – see green and red numbered circles) swing areas, with the price currently trading between those levels at 1.3383 (as I type).

Drilling to the 5 minute chart below, the trading price action this week started to head lower on Wednesday with the more away from the 100/200 bar MAs (blue and green lines in the chart below). The successful test of the 100 hour MA early on Thursday was bearish and falling away from the 100 day MA (at 1.3498 currently) was also a bearish play.

The fall below the swing area on the 4-hour chart between 1.3357 and 1.3377 tried to stay below the area on the first correction off the lower but moved back above, and started to find support buyers in the area (at 1.33678). The price moved higher today peaking near the high of the higher swing area on the 4-hour chart.

The price is currently back below the 100/200 bar MAs after last testing the 38.2% on the London/early NY correction at 1.34117. Bearish. Moreover, the price action looks head and shoulder-ish with a break below 1.33678 and then 1.3357, increasing the bearish bias in the short term.