The GBPUSD is moving back lower and approaches the low for the day at 1.2625. In doing so, the price is back below the 100-day moving average at 1.26373. The corrective move higher in the US session took the price up to a high of 1.2662 before rotating back to the downside.

Getting back below the 100-day moving average is another attempt. Yesterday the price moved below the moving average and could not sustain momentum. Earlier today the price moved below the 100-day moving average and could not sustain momentum.

Last week, the low price reached 1.2615. The week before the price reached 1.2619. Below that level, there are other swing levels going back to mid and late June which extended down to 1.25904. Ultimately, if the sellers are to take control, getting below that floor area (see red numbered circles and yellow area) would open the door for a more bearish bias.

With the floor being approached, there could be buyers within this area down to 1.25904. Why? Because risk can be defined and limited against the area. Stay above and move back above the 100-day moving average, and there could be yet another push higher simply on the failure to get below the floor.

On the top side, the 1.2678 – 1.26988 area is the next target followed by the 100 bar moving average of the 4 hour chart 1.27234.