The GBPUSD gapped lower today (higher USD) and moved lower into the European session.
The low prices for the day tested a swing area 1.2159 and 1.2167. Support held in the London morning session and then early US session before moving higher.
The subsequent run to the upside stall against the low of a swing area between 1.2219 and 1.22316 (see red numbered circles). Sellers leaned against that low swing area. The price currently trades just above the 1.2200 area.
On a break above, traders would look toward the high price from September 29 at 1.22715 followed by the 50% midpoint of the move down from the September 11 high at 1.22919.
On a break below the moving averages at 1.21586, traders would target a swing area between 1.2105 and 1.21109.
With the technical support holding below and technical resistance holding above, market traders will wait for the next shove. Until then, the ups and downs continue between the two areas.
This article was written by Greg Michalowski at www.forexlive.com. Source