61.8% of the move down from August trading range
We are in September, but the GBPUSD is testing the move down in August. That move took the price from a high of 1.32673 to the low at 1.27728. The 61.8% retracement of that move comes in at 1.30784 and that level is currently being tested.
Traders can lean against the level with stops on a break above.
Helping the upside today is that earlier, the price low bottomed against the 50% retracement at 1.3020 (the low reached 1.3018 before the run back higher). That gave the buyers the confidence to push higher and they have. Yesterday, on Friday and Monday, the pair also bottomed near the 100 day MA (blue line in the chart above). That too is bullish.
So overall the bias is bullish for the pair but the retracements are the levels in play for the GBPUSD. We will see if the sellers enter and stall the rally here. Key test.