The GBP/USD pair is trading with volatile, short-term swings today, leading to a modest intraday decline. This period of consolidation has allowed the rising 100-Hour Moving Average (MA) to catch up with the price action.
Critical Support Cluster
The pair is currently testing this hourly MA near 1.3400. This level is reinforced by a short-term swing area defined by 1.3391 and 1.34048. The combination of the 100 hour MA and the swing area is acting as a strong defensive cluster, which is essential for keeping the short-term bias bullish.
Inflection Point
If the price breaks decisively below this confluence point (specifically, the 1.3391 swing low), the technical bias would immediately switch to the downside, targeting the 200-HMA as the next major support.
Key Resistance Targets
On the upside, buyers face immediate resistance at the 38.2% Fibonacci retracement of the move down from the September high, which sits at 1.3430. A sustained break above this Fib level is necessary to intensify the bullish pressure. The subsequent targets are:
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The Friday high at 1.34704.
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A stronger, dual technical barrier at 1.34865, where the 100-Day Moving Average (DMA) converges with the 50% Fibonacci retracement from the September high.
This article was written by Greg Michalowski at investinglive.com.