The 50% midpoint of the range since the September 29 low comes in at 1.36224
The GBPUSD move below the 50% midpoint of the range since the September 29 low at 1.36224 during trading yesterday. The low price reached toward a swing area near 1.36082. The price reach 1.3605 yesterday and stalled.
In trading today, the Asian session saw the price move above and below the 50% retracement level, but remained above the low from yesterday as well.
European traders took the pound higher and tested swing highs from yesterday near the 1.3666 area. The early US session has seen a rotation back down on dollar buying after the better data, but the price has since moved back toward its high on continued corrective price action today.
There is a bit of a bid in the pair today after selling over the last three trading days. Having said that, getting back above the broken 38.2% retracement at 1.3672 is a confirmation target, which would be followed by a break of the falling 100 hour moving average at 1.36876. It would take a move above each of those to give the dip buyers some added confidence.
The 1.37085 level is also a target level to the upside. Recall the October 18 and October 27 swing lows came in near that level, and the price traded between it and the 1.38337 level over 11 days prior to the break on Friday. Staying below that up red box is needed to give the sellers some hope.
