The 1.27579-1.2771 area is home to swing levels
The price of GBPUSD has backed off from a swing area defined by swing levels. The Feb low came in at 1.2771. The swing highs from June reached 1.2762 and 1.27579. The high today reached between those levels at 1.27657 and backed off. We currently trade at 1.2725. That is down -13 pips on the day now (closed at 1.2734 on Friday).
Drilling to the hourly chart, the pair is currently moving below the 1.2727 level. Recall from last week, there has been a number of swing levels at the area. Stay below and then move below the 38.2-50% of the move up from Friday's low at 1.27037-183 (correction zone) and the bears take more control. The 61.8% retracement at 1.2689 and the rising 100 hour MA at 1.26608 (blue line) would be other downside targets (see hourly chart below)
On a move higher getting back above 1.27418-471 and then the high swing area from the daily at 1.27579-71 would be targets to get and stay above....
