January 2nd high at 1.32656 tested and backed off
The GBPUSD continued to move higher in the Asian session and in the process reached the high from January 2nd at 1.32656. The high reached 1.32665 and backed off (Bloomberg does have a higher January 1 price from somewhere around the globe at 1.3278 - just take that out at some time so there is no ambiguity please).
Anyway, the price reached that 2020 high (on my chart) and backed off. The pair is currently trading at 1.3214 as I type after reaching a low of 1.3195. The swing high going back to March 2020 reached 1.31995. If the price is to continue the run lower, getting and staying below that 1.3200 level will be needed.....
Drilling to the hourly chart below, the price correction moved back below the broken channel trendline and down toward the 38.2% retracement of the move up from the Monday swing low. That level comes in at 1.31927. The price stalled just ahead of that retracement level. With the swing high from March at just below the 1.3200 level and the 38.2% retracement 1.31927, that area is the barometer for the bulls and bears in the short term. Stay above more bullish. Move below is more bearish.
