The GBPUSD has reversed, more than 1/2 of the declines from Friday's trade that saw the GBP as the weakest of the major currencies with a trend move to the downside.
Today, the price based in the Asian session against the lows from Friday and also a swing area going back to April 14 through April 19 between 1.3798 and 1.38116. In the European session (London is closed for the day), the price has reversed higher, getting back above the swing low area between 1.38577 and 1.38616. Recall that area was home to swing lows from last Monday Tuesday and Wednesday. After breaking above that area, the price extended up toward the 200 hour moving average of 1.38951 (and the 100 hour moving average of 1.38993). The high price just reached 1.38942 just short of that moving average level. Willing sellers have pushed the price back down toward 1.3878 as I type. Sellers may have found their take profit level against the dual moving averages.
Going forward, the aforementioned lows from last Monday, Tuesday and Wednesday at 1.38577 – 1.38616 will now be eyed as close support intraday. Move below and the 1.3838 - the 50% midpoint - becomes the target. Stay above and the battle between the moving averages above, and the swing area below becomes the upper and lower borderlines for buyers and sellers (we could see swings between those two levels until the next shove).
Sellers other than Friday, but it has been about buying more today. The good news is a technicals are telling a story. On Friday it was all about getting through technical levels including the moving averages, swing areas until swing area support held at the lows. Today, it has been about stalling there swing area support, moving above upside target and finally finding resistance against moving averages.