The GBPUSD extended to a new session low, reaching a key downside target at the rising 100-hour moving average, currently at 1.3503 (blue line on the chart). This level also aligns with the lower boundary of a swing area, marked by the 1.3505–1.3514 zone (highlighted with red numbered circles and the yellow shaded area). The confluence of technical support offered traders a clear risk-defining level—a place to either take profit or consider buying the dip.

As long as the price holds above this zone, a corrective rebound remains possible. A move back above the 38.2% retracement level at 1.35263 would give buyers additional confidence and shift the near-term momentum more favorably.

However, if the price breaks below the support zone, the short-term bias turns more bearish, and dip buyers may look to exit with limited losses, shifting focus back to the downside.

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This article was written by Greg Michalowski at investinglive.com.