38.2% retracement of the week's trading range comes in at 1.34923
The GBPUSD has corrected lower in trading today after trading to the highest level since May 2018 yesterday. The move to the high at 1.36237 was able to get above a swing level from May at 1.36169, but could not sustain momentum. The price corrected into the close yesterday.
In trading today the corrective move continued, but the price has found support near the 38.2% retracement of the trading range this week (low on Tuesday – high on Thursday). That level comes in at 1.34923. The low price dipped just below that retracement level to 1.34882 before rebounding.
In the early New York trading, the pair had returned back to retest that 38.2% retracement and has held so far. The current price trades at 1.3505.
On a break of the 38.2% retracement, traders will be focused on retesting its 100 hour moving average at 1.34699.
Should support hold at the 38.2% retracement the swing area between 1.35387 and 1.35529 (see yellow area with red numbered circles) would be close resistance. Move back above that area and the buyers against the 38.2% retracement will feel more confident that the trend is still their friend.
