A nice bounce in the GBPUSD. Retracing the declines of the day.

The GBPUSD move down to test its 100 hour moving average 1.27456. See the video below:

The low price reached 1.2749 and found willing buyers against that moving average level. A swing area was also entered between 1.2738 and 1.2759. Buyers leaned against support (see chart below).

The price has bounced back above the 1.2800 level and currently trades at 1.2822. The high price reach 1.2823 so far. The European assessment Hyatt was at 1.2824.

What next?

Watch support at 1.27803. That was a high price from last Thursday. Above that is a swing area up to the high price from June 16 and from Friday’s trade near 1.2848. Move above that level and the pair would be trading at the highest level since April 22, 2022. Looking at the daily chart below, there is not a lot of resistance until 1.2971 to 1.29987 (call it 1.3000 – see red numbered circles on the chart below).

This article was written by Greg Michalowski at www.forexlive.com. Source