The GBPUSD reversed course after failing on the move higher earlier today. The price is back down testing the 50% of the move higher from the July 6th low at the 1.5518. The 200 hour MA is also nearby at the 1.55156 currently, as is the close from yesterday at 1.5516. So lots of stuff at the area.
Just like the action at high, traders remember the laps the pair took yesterday and may use the support area as a level to book profits “just in case”. Many a profitable “trade” was erased yesterday on the up and down volatility. A break of the 1.5512 would change minds but until then, caution might be the trader preference.
Look for corrections to hold the 1.5540 area. A move above and those sellers who have not covered, might give up and cover at that point (see chart below).
