GBPUSD is trading at a new session high and in the process has reached its 32.8% retracement of the week’s trading range. The highest price came on Monday at 1.24052. The lowest price was today after the pair broke below yesterday’s low at 1.2165. Low price reached 1.21543 today. This low moved below lows for the year and also below lows dating back to May 2020 – see post here)
The last 3 hours or so has seen the price move back up. This rebound was helped by the failure of new ongoing lows (sellers turned buyers on the failed breakout). Compression is underway after the sharp decline seen in 2022. The early January high was up at 1.3747. The low was yesterday at 1.21543. That’s a 1600 pip drop from high to low.
Going forward, a move above the 38.2% retracement will be a further step in the short-term bullish direction, but there would still be more targets to reach and break through. Monday’s low at 1.2260 and the decline in the 100 hour moving average at 1.22742 would be next targets. The 50% midpoint of the week’s trading range sits at 1.22798.
Exceeding these levels – and staying above them – is the minimum if buyers want to regain more control.