Support between 1.37208 and 1.3733
The GBPUSD is banging on supports door. That support comes between 1.37208 where the 61.8% retracement of the range since September 14 cuts across and a swing area between 1.3725 and 1.3733 his found (see red numbered circles).
The low price for the day did crack below the 61.8% retracement at 1.37208 on its way to a low for the day at 1.3716, but could not sustain momentum on that break. The current price is trading at 1.3726 which is still above the 61.8% retracement level (and low of the swing area).
A move - and staying below - the 1.37208 level would have traders targeting the 1.3700 natural support level, followed by the rising 100 hour moving average at 1.3676. The high price going back to last Monday comes in just below that level at 1.36738. After that comes the 50% midpoint at 1.36617. Those levels are the progression to the downside on further corrective bearish price action.
Should the support hold here, a rotation back above the 1.37502 swing high from September 23, followed by a move above the high for the day at 1.3764 should increase the bullish bias.
Overall, although the price is lower on the day, the sellers still have to prove that they could take back more control after the rise higher since the September 29 low. Holding resistance against the 1.37636 swing area gives sellers some hope, but getting below the 61.8% retracement 1.37208 is still needed to increase the corrective/bearish bias at least in the short term.
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