The GBPUSD is stretching to a new high for the day and in the process has reached a new swing area between 1.27229 and 1.27351 (see red numbered circles on the chart above). That area was home to a resistance and support stall area on the way up in March and a support and resistance stall area on the way down later in March. The price has not returned to that area since today. There should be some stall at this area with more momentum on a break above the area.
A move above will have traders looking toward 1.2771, and then toward the 1.2800 level. Recall from December to April, the price of the GBPUSD traded most of that time between 1.2594 and 1.2800.
Yes, there were moves above and below that value area over the Dec to April time perion, but most of the trading occurred within that range (see red box on the chart above).
Close support is now down to 1.2700 and below that the broken 61.8% of the 2024 range at 1.26659.
This article was written by Greg Michalowski at www.forexlive.com. Source