Buyers lean against swing area
Like the EURUSD, the GBPUSD whipped around yesterday with the price racing higher (to 1.33969) before reversing and tumbling lower (to 1.3263).
The price retraced higher and in trading today, the price moved toward interim highs ahead of the high from yesterday at 1.33795 area The price over the last 5 hours has seen a reversal with a move back down. The pair currently tests the swing area between 1.3309 and 1.3311 (see green numbered circles). A move below that level would have traders targeting the tool support defined by the 100 hour moving average and the 38.2% retracement near 1.3285 – 1.3288 area.
Hold support and the 1.33502 becomes a next upside target.
As I type, the price is putting a strong test on the support area. Decision time for buyers and sellers. A break below should see more probing to the downside as the pair not only falls below support but trades more into the negative for the day. The 100 hour and 38.2% retracement would be eyed.
