50% midpoint of the range since July 20 at 1.3777. The 200 day moving average 1.37804
The GBPUSD has rebounded off of a support area today and has worked its way back toward key resistance (and bias defining area) from the 50% midpoint of the range since July 20 at 1.3777 and the 200 day moving average at 1.37804.
Looking at the hourly chart, the price fell sharply yesterday. When the price cracked below its 200 day moving average and 50% retracement, the momentum continued lower with the pair’s decline stalling near the 61.8% retracement of the same move up from the July 20 low. That 61.8% retracement level came in between swing lows going back to July 23 and July 26 at 1.37192 and 1.37357 respectively (see yellow area and red numbered circles).
In trading today, the late Asian/early European session low stalled just ahead of the 61.8% retracement and between the swing area, and started a rotation back to the upside. The high price just reached 1.3770 which is 7-11 pips from the aforementioned key resistance target.
I would expect, sellers to lean against those two levels with stops on a momentum move above. Risk can be defined and limited against the dual technical levels.