GBPUSD comes off highs but holding a swing area.
There is something about the 1.2727 level, and old level that attracted action
The GBPUSD moved sharply higher in trading earlier in the day but when the price approached the 1.2727 level (see green numbered circles in chart below), there was a stall. There is something above that level.
In fact, back on June 11, I wrote in this post:
On the topside, there is something about the 1.2727 area. That is a level that needs to be broken and stay broken, if the buyers are to take more control. Above that, and the buyers would start to look toward the 1.2742-47 area (yellow area).There is something about the 1.2727 level. On June 12, the price indeed moved above the 1.2727 level on the way to 1.27579. However, later in the day, the price moved back below the "key" swing level, and raced lower.
The pair bottomed earlier this week at 1.25053 before starting the move back higher this week.
I can't help but remember that old video which was spurred by a Forexlive user comment saying "1.2500 here we come" - see video "The roadmap to doing the "imposssible" in your forex trading" here). Well, that commentator got it right (PS. it was 700 pip move lower to the 1.2500 level).
Back to the present...
The move off 1.2727 level today has bottomed near a swing area at the 1.26614-698. Yesterday, I spoke of getting above this area for more bullishness (see post here). When the price moved above the level earlier in the day, it stayed above.
Now....the correction off the 1.2727 today, just moved back down to that break area, and are seeing a stall.
So, the levels have been defined for the pair for the day.
- stay above the 1.26614-698 and get above the 1.2727 level
On breaks (of either) we should see some momentum in the direction of the break.
- get below 1.26614-698 area and stay below. On rallies, stay below the 1.2727 level.
There is something about the 1.2727 level and also the 1.2661-69 area.