The GBPUSD traded to a new session high, and in the process tested the 38.2% retracement of the move down from the April 21 high. That high on April 21 was the high price before the trend move to the downside that culminated in the price reaching the cycle low at 1.21543 on Friday
On Tuesday and again on Wednesday, the corrective high prices reached the 1.2500 area and found willing sellers.
The subsequent fall yesterday took the price all the way back down toward the rising 100 hour moving average (see blue line in the chart above currently at 1.23557). Support buyers leaned ahead of that level.
In trading today, the late Asian/early European low also tested the 100 hour moving average and found willing, risk-focused buyers. Holding the 100 hour moving average, gave the buyers confidence to push higher into the London morning session and the US session.
The test of the 38.2% retracement was able to get above the 1.2500 level, but not that retracement level. Ultimately, getting above the 38.2% retracement would be the minimum retracement target needed to be broken if the buyers are to take more control. So far, sellers are happy to lean against that retracement level.
Should that retracement level be broken, traders will target a swing area between 1.2559 and 1.2577. Above that, and traders would look toward the the 50% retracement of the same move down at 1.2622. The high price from May reached 1.26373 and would be another upside target to get to and through..
On the downside, intraday traders will be watching the 1.24656 to 1.2473 area as close support (see green numbered circles). Below that and watch the 1.24487 area (see red numbered circles). That was a swing low going back to May 4 and also a swing low from Tuesday's trade. Holding those levels would keep the idea of a break of the 38.2% retracement in play.