Hourly and intraday support

The better than expected US data has sent the GBPUSD back to the downside where it is testing support.

Looking at the hourly chart of the GBPUSD, the pair is testing support at the 1.3047-52 area. The area is defined by swing levels, and the 61.8% of the move down from the July 18 high. Holding it would keep the bulls more in control. PS. the pair got its push higher today off the 100 hour MA (blue line). That bounce gave the buyers more confidence for the bounce.

Drilling to the 5 minute chart, the 50% midpoint of the move up from the low today comes in at 1.30452.

If the price correction can hold this area, the buyers have the potential to take the pair back toward the highs.

Conversely, a break below the area now and more buyers are likely to turn to sellers.

The headwind fundamentally is from better US confidence and Richmond Fed manufacturing data. Both came in better than expectations. So fundamentally, that is more bearish for the pair. Technically, the pair is at the crossroad for bullish above/bearish below.

Key intraday technical test for the pair.