GBPUSD retests the 50% retracement. A move above would be more bullish

The GBPUSD GBP/USD The GBP/USD is the currency pair encompassing the United Kingdom’s currency, the British pound sterling (symbol £, code GBP), and the dollar of the United States of America (symbol $, code USD). The pair’s rate indicates how many US dollars are needed in order to purchase one British pound. For example, when the GBP/USD is trading at 1.5000, it means 1 pound is equivalent to 1.5 dollars. The GBP/USD is the fourth most traded currency pair on the forex exchange market, giving it ample liquidity a The GBP/USD is the currency pair encompassing the United Kingdom’s currency, the British pound sterling (symbol £, code GBP), and the dollar of the United States of America (symbol $, code USD). The pair’s rate indicates how many US dollars are needed in order to purchase one British pound. For example, when the GBP/USD is trading at 1.5000, it means 1 pound is equivalent to 1.5 dollars. The GBP/USD is the fourth most traded currency pair on the forex exchange market, giving it ample liquidity a Read this Term - like other pairs - has seen a run lower and move back higher helped by the Fed chair comments.

The move back to the upside has taken the price back above the 200 and 100 hour moving averages at 1.2212 and 1.2262 respectively. The high price has reached up to retest the 50% retracement of the move down from the May 27 high. That level comes in at 1.22995 (call it 1.2300). Recall from yesterday, the price moved above that level only to fail and move back to the downside. Recall from last week the price moved above that level on 2 separate occasions in each break also failed.

Nevertheless get above the 50% retracement and the bias turns more bullish. Traders will look for more upside momentum with the high price from yesterday at 1.2323 as the next target to get to and through. Move above that level opens the door for further upside momentum. More importantly it establishes the 50% retracement as the new risk defining level.