GBPUSD bounces off 100 hour MA/38.2% retracement. Works toward high for the day (and key swing level).

Technical Analysis

Author: Greg Michalowski | gbpusd

The ups and downs continue...

The GBPUSD moved lower and in the process cracked below the swing highs from November 11 and November 18 at 1.3309 to 1.33116. That led to a run toward the dual support target defined by the 38.2% at 1.32856 and the 100 hour moving average just above that level at 1.3288. In addition, an upward sloping trendline cut across in the area (so really 3 support targets - see post earlier here).
 
The ups and downs continue...

The price bounced off of that level and the pair has marched back higher.  

The price of the GBPUSD is now above a swing area at the 1.33502 level.  That level corresponds with swing lows and highs from yesterday and today (see green numbered circles). 

The next upside technical target for the pair would be at the highs for the day near 1.3380. That was also a swing high and low intraday yesterday as it probed to the upside and tested the 1.3400 level (the high reached 1.33969 - see red numbered circles)). 

When that level was broken back to the downside yesterday, sellers piled on and the market quickly trended back to the downside. 

Needless to say the high price today stalled with that level (and memory from yesterday) in mind. The holding today, creates a stronger potential ceiling to break on further upside momentum.  Be aware for sellers leaning on another test with stops on a break above.  

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