The GBPUSD dipped to a new session low and in the process also fell below the 100 hour moving average at 1.24795. Early in the London morning session, the price also took a small peek below the MA line, only to bounce back higher. The corrective move - off that bounce - stalled within a swing area ahead of the extremes reached yesterday and today. That swing area comes between 1.2500 and 1.2524.
On the dip back below the 100 hour moving average in the current hourly bar, the buyers have once again come in and pushed the price back higher. The GBPUSD price is currently moving back toward the 1.2500 level (the low of that swing area). Traders will be watching that area for resistance. Note that also within that swing area sits the 38.2% retracement of the move down from the April 21 high at 1.25116.
Yesterday, the price moved above the high price from last week at the 1.2524 level. The subsequent high for the GBPUSD extended to 1.2600 - a nice round number. Today the high price in the early London session reached 1.2598 just below that level. The price action stalled and moved back to the downside.
The fundamental catalyst was the flash manufacturing PMI data which came in weaker than expected. The services PMI was the weakest as it fell to 51.8 from 56.9.
Should there be a re-break of the 100 hour moving average, traders will be eyeing the 1.24369 to 1.24487 swing area followed by another swing area between 1.2400 and 1.2411. The rising 200 hour moving average comes in at 1.23912.
On the topside, get above 1.2500, 1.25116 (38.2%) and 1.2524 (high from last week), and the price reenters the extreme area from yesterday and today up to 1.2600.