While UK traders celebrate Boxing Day, the GBP/USD is under pressure, falling to new session lows and extending its decline further away from the downward-sloping 100-hour moving average. The pair opened the post-Christmas trading day just below the 100-hour moving average, currently at 1.25365, and remained below it during the Asian Pacific session. As the day progressed into the U.S. session, the bearish momentum strengthened, with the price now trading at 1.2509 after testing the psychological support level at 1.2500.

A break below 1.2500 would shift focus to the swing low from November 22 at 1.2487, with additional support at last Friday’s low of 1.24739, where the pair reversed sharply higher. On Friday, the upside was capped near the high of a swing area between 1.2596 and 1.26147, with the failure to breach that zone prompting sellers to regain control and drive the pair lower.

Looking ahead, a move back above the 100-hour moving average would provide buyers with a foothold and force sellers to reconsider. Further resistance lies at 1.25655, followed by the falling 200-hour moving average at 1.25987, and the aforementioned swing area up to 1.26147. For now, the bearish bias remains intact below these key levels.

This article was written by Greg Michalowski at www.forexlive.com.