In the last report, the price was testing a support area at the 1.5618-28 (see yellow area). That level was breached and the price extended lower. Over the last month the price has moved below this level and reversed on 3 separate occasions. Today was more of the same as the break failed.
Part of the rebound may have been the failure to extend lower after breaking. Part was a reversal of the EURGBP which was on it’s own upward surge higher. When the market rips around like this it can simply be the effects of the holiday season.
Being back at the middle of the trading range and other resistance levels (200 hour MA/Underside of trend line), it can be an area to lean against as risk is defined and limited. If the price moves above, all bets are off, however. What was once support at 1.5618-28, stays support for the same reason. It is a traders market. You have to be nimble and quick.
GBPUSD is back up testing 200 hour MA, underside of broken trend line and 50% retracement level
