Price tests the swing low from Thursday
The GBPUSD has corrected higher in trading today and trades at a new session high. The pair is testing the swing low from Thursday’s trade at 1.38948. The high just reached 1.38959.
Looking at the hourly chart, the next target comes in at a swing high from Friday at 1.39097, and then the 38.2% retracement of the move down from last week’s high at 1.39178. Break above that level and traders will start to look toward a retest of the 100 day moving average at 1.39364.
On the downside, the price was able to extend back above a swing area between 1.3853 and 1.38616 (see blue numbered circles). If the price can stay above that level, that is a tilt more in the bullish side. A move below and this move to the upside is a modest correction and the tilt moved back in favor of the bears/sellers.