GBPUSD moves to new lows for the week and below a swing area but sees a rebound

The GBPUSD has moved lower this week and in the process moved below the 50% midpoint of the move up from the June 29 low at 1.28658. Today the price also moved below a key swing area between 1.28349 and 1.28486. That break saw the price move down to 1.2816, before rebounding back to the upside. The price has traded back above the swing area but currently trades within that area.

For today, the swing area will be a barometer for bullish above/bears below. If the price moves back below the level, the sellers should see a push back down toward the 1.2800 level and the 61.8% retracement of the move up from the June 29 low.

Conversely, a move back above, and a move toward the 50% midpoint 1.28658 would be anticipated. Move above that level and the dip buyers can breathe better. Recall that the low price on Wednesday stalled right at that 50% midpoint level. That increases the levels importance.

So watch the 1.28349 – 1.28486. Use it as a barometer for the short-term technical bias today.

This article was written by Greg Michalowski at Source