Yesterday the GBPUSD tumbled lower on the back of the China/US tariff fall and suspension, and in the process sliced through the familiar swing zone at 1.32598 (see green numbered circles) and the lower band between 1.3232‑1.3241 (see red numbered circles), then briefly pierced the 38.2 % retrace of the April rally at 1.31603, printing a session low of 1.3139. Momentum dried up quickly; the pair rebounded back above the retracement and used it as a launchpad in late US trading and early Asian-Pacific trading today. The low price today held at 1.31639, keeping that Fibonacci level intact as risk‑defining support. Remember that level going forward on any reversal back to the downside.
The rebound helped by the lower CPI today in the US has carried price back into the congestion corridor . The first layer of topside work sits at the old swing floor turned ceiling between 1.3232 and 1.3241, followed by the swing level and 100‑hour moving average which both come in at 1.32598. A decisive break above that 100‑hour MA would open the door toward the 200‑hour MA at 1.32845. A break above would re‑energise the upside once again
Failing to clear the 100 and 200 hour moving averages would keep the sellers in play
Key technical levels (one‑liners):
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Short term bias defining level intraday: 1.32320‑1.32410 (swing area)
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Resistance 1: 1.32598 (100‑hour MA)
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Resistance 2: ≈1.3284 (200‑hour MA)
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Support 1: 1.3201 to 1.32067 (swing area)
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Support 2: 1.3160 (38.2% retracement)
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Support 3: 1.3139 (low from yesterday)
This article was written by Greg Michalowski at www.forexlive.com.