The GBPUSD extended to a fresh session low early in US trading, but the dip quickly attracted buyers, sparking a rebound higher. At the downside extreme, the pair found support against its 100-hour moving average (blue line), which is currently positioned near 1.34135. That level provided a floor and gave traders a reason to step in on the buy side.
On the topside, the recovery rally stalled as the price tested the 200-hour moving average (green line), which is falling and currently sits near 1.34592. That barrier has capped the upside momentum for now, leaving the pair caught between the two moving averages.
At the moment, the GBPUSD is trading around 1.3447, leaning closer to the 200-hour average than the 100-hour, but still holding below today’s peak. The technical picture suggests a market that is consolidating between key moving averages, with traders watching closely to see which side breaks first for the next directional push.
As the new trading day unfolds, the focus will be on a break — and importantly, a break with momentum. On the upside, a move above current resistance would expose the 38.2% retracement of the decline, coming in at 1.34769, followed by the 100-day moving average at 1.3490. A sustained push through those levels should shift sentiment further in favor of the buyers and open the door for a run toward the 50% midpoint at 1.3524, which becomes the next major upside target.
On the downside, failure to hold above the 100-hour moving average at 1.34135 would instead tilt the bias back toward the sellers. A break there puts the spotlight on a swing area between 1.3360 and 1.3378, a zone that has defined key turning points in recent sessions. If that area gives way, attention will turn to last week’s low at 1.3323, which would represent a significant bearish extension and confirm the downside momentum.
