GBP/USD Tests 200-Hour Moving Average at 1.3364 Amid Selling Pressure
Sterling slides to a pivotal technical level after bulls repeatedly failed to clear a key resistance cluster near 1.3399.
The British pound fell sharply against the dollar during North American trading Wednesday, with GBP/USD sliding to its 200-hour moving average at 1.3364 — a level that has served as a critical support pivot since late June. The selloff accelerated after buyers repeatedly failed to sustain gains above 1.3399, a dense resistance zone formed by the convergence of the 100-day moving average, the 200-day moving average, and the 50% retracement of the rally from the May low. That string of failures has handed near-term momentum back to sellers.
The 200-hour moving average carries added weight at this juncture because it also aligns with Wednesday's Asian session low, compressing two layers of technical support into a single price zone. Buyers successfully defended that moving average on a June 30 retest before the pair launched its subsequent advance, meaning a clean break below it now would mark a meaningful shift in the short-term structure.
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Should sellers force a sustained close beneath the 200-hour MA, technical targets come into focus at 1.3338 and then last week's low near 1.3323. A breach of that latter level would expose the 1.3300 area as the next downside objective, representing a notable leg lower from current levels.
Conversely, if buyers mount another defense of the 200-hour MA and hold today's lows, the focus snaps back to the 1.3399 resistance cluster. Reclaiming that zone — and its triple confluence of daily moving averages and the Fibonacci retracement — would be required to restore bullish control and revive confidence in the pair's broader uptrend.
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