The GBPUSD trades between well-defined technical levels, offering a clear battleground for buyers and sellers. On the downside, today’s session low stalled at a familiar swing level near 1.3561, a level that also provided support back on June 24 (see green circles). Although the pair briefly broke below this level yesterday, it quickly rebounded, and today’s bounce reinforces it as a key floor.
On the topside, the 100-hour moving average, now at 1.3620, has acted as firm resistance for a second consecutive day. While slightly lower than yesterday’s level, sellers leaned against it early in today’s session, keeping bulls in check.
With the 100-hour MA and 1.3561 swing level clearly defining the short-term range, the market is poised for a directional breakout. Traders are watching for a shove outside of this zone to guide the next leg in GBPUSD.
Key levels:
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Resistance: 100-hour MA at 1.3620
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Support: 50% midpoint at 1.35786. Swing level at 1.3561
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200-hour MA (above): 1.3662 target on a break above the 100 hour moving average with momentum
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50% retracement (nearby): 1.35786
This article was written by Greg Michalowski at www.forexlive.com.