GBPUSD tests a swing area at 1.26614-698
The GBPUSD rallied early in the day, but stalled just ahead of the 1.2727 level (again). There is something about that level. Traders were leaning.
The move lower, fell below a swing area on the hourly (see green circles) at 1.26614-69 area but stalled at the 200 hour MA and the 38.2% retracement at 1.26414-444 area. Buyers leaned there.
So we trade above the support from 200 MA and 38.2% and the swing area. How the market swings from here (above or below the levels), will influence the bias from here.
You can take the view from the chart, that the correction off the high today is just normal (at 38.2% and back to the 200 hour MA).
You can also take the view that the upside this week was limited by that 1.2727 level and below the higher swing highs from June (and therefore back down we go).
The safest/most content traders today were the ones leaning at the 1.2727 level, and those who patiently leaned against the 38.2%/200 hour MA area. Each are looking at each other and saying "Now what? Who's going to feel the next shot of pain?". Getting above 1.26698 or moving below 1.26614-443 will be a tilt for those traders.
