...and below MAs
In an earlier post today, I spoke to the breaking of the swing area in the GBPUSD between 1.3280 to 1.32913 (see post here). The price correction in the early NY session back to the swing area - and holding that area - gave the buyers some additional confidence to push higher (and sellers from earlier a reason to cover). The price has reached up to retest the 38.2% retracement of the move down from the high last week at 1.33537.
What now?
The support held. The next upside target has held. Stocks in the US have rebounded and trades at the session highs (but still lower on the day). That has helped the tone in the GBPUSD.
However, if the pair does move higher from here, the 200 hour MA and 50% retracement area at 1.3405 is a key and strong target to get to and through. Admittedly, the price is still some 50 or so pips away, but the GBPUSD has been moving in big chunks today. Anything is possible.
IF the 38.2% does hold resistance (or slow the rise), the aforementioned swing area between 1.3280-913 remains key support.
