Back above the broken 38.2% of the move up from the September 29 low
The GBPUSD fell sharply on Friday and in the process reached its 38.2% retracement of the trading range since September 29 low. That level came in at 1.3672. The low price on Friday reached 1.36673 and bounced.
The price action today saw that 38.2% retracement level give way, and move toward a lower swing area between 1.3640 and 1.36537 (see red numbered circles in yellow area). Buyers came in against that dip area and have pushed the price higher over the last three or so trading hours. The price has extended back above the broken 38.2% retracement 1.36722 in the process. That retracement level will be eyed as a close support level intraday. The high price has reach 1.36922 so far.
On the topside, the 1.37085 is home to the swing low from October 18 and October 27. That is the next major target on further upside momentum. On Friday, the price traded above and below that level on the initial run to the downside, then gave way and pushed toward the 38.2% retracement. If the price can get back above that old floor, there should be more upside momentum.
