The GBPUSD has reached the high today of 1.2652. The current price is trading at 1.2642. At the high, the price got closer to its swing high going back to May 8, 2022 near 1.2665. A move above that level would have traders targeting this 61.8% retracement at 1.27605.
On the downside, traders will be watching the low of the swing area near 1.25987 as close support.
Buyers are making a play into resistance. You have to go through resistance to get extend higher, but it may also slow the rally or bring in traders against that area, with a stop above (risk is limited).
Looking at the hourly chart, the price action was very volatile today with the initial move to the upside leading to a sharper move to the downside and then a snapback rally back higher.
So what now?
In addition to support at 1.25987 from the daily chart, the swing high from last Friday at 1.25829 and the 38.2% retracement of the move up from this week's low at 1.25689 are the downside targets.
