100 hour moving average at 1.31444
The GBPUSD fell sharply in trading yesterday and initially moved lower in the Asian session today. The fall to the downside took out the low from Friday’s trade at 1.30723, bottoming at 1.30637 before finding some dip buyers.
The run back to the upside was 1st able to extend (a little reluctantly) back above its 200 hour moving average at 1.31041, and then the 100 hour moving average 1.31444 (blue line in the chart above). The 30.2% retracement of the move down from yesterday’s high also is in that area at 1.31423.
If the correction is to continue getting above that area would be needed. Until then, it looks more like a plain-vanilla correction into resistance, with the 200 hour moving average 1.3104 as the next downside target.