1.2768-74 had lots of swing levels in April/ May.
The GBPUSD has moved above an old floor level going back to the April snap election announcement day. That area comes in at 1.2768-74.
Admittedly, earlier this month, the price chopped above and below that level. It should not do that, but the "market" was not sure what it wanted to do. Now we test the level again.
Putting a Fibonacci on the price action this month, the pair has moved up to test the 50% of the range at 1.27829. A move above that level should open up the pair for further gains.
What is the risk for the longs now?
Looking at the 5 minute chart, the price action higher today has had its share of ups and downs with an upward bias. The close support would be 1.2768. We just held that level on the last look lower. Below that a trend line currently cuts across at 1.2761. The 100 bar MA on the 5- minute comes in at 1.27538 and is moving higher.
