Support held at the 38.2%/high from yesterday
In an earlier post, I outlined the topside resistance at 1.36169 for the GBPUSD. That corresponded with a high going back to 2018. The high extended to 1.36219 and rotated lower.
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Also outlined in the post, was the support target at the 38.2% retracement of the move up from yesterday's post FOMC low at 1.35563 and the swing high from yesterday at 1.35529. I commented
"it would take a move below those levels - at the minimum - to tilt the bias more to the downside. Failure to do that, and the buyers are still in firm control".
The corrective NY session low today stalled at 1.35584 - just above that "minimum' target. The buyers remained in firm control and the price has pushed back higher.
What now?
We are back up testing the highs for the day. A move above - and staying above - opens the door for further upside momentum. A topside trendline connecting the high from yesterday to the high from today cuts across at 1.3640. That would be the next target. Above that and traders will be targeting the topside channel trendline at 1.3692 (and moving higher).
If sellers stall the rally here, getting back below the 38.2% retracement and the high from yesterday, still remains the minimum target needed to get to and through, to tilt the bias more to the downside.
