GBPUSD is testing the swing high from April to June 2022.
The GBPUSD reached its highest level today at 1.2652. The current price is trading at 1.2642. At the top, the price approached its highest level since May 8, 2022, near 1.2665. A move above this level would have traders aiming for that 61.8% retracement at 1.27605.
On the downside, traders will watch for a swing low near 1.25987 as close support.
Buyers are playing resistance. It must pass resistance to expand higher, but it could also slow the rally or bring traders against that area, with a stop above (risk limited).
Looking at the hourly chart, the price action has been very choppy today with the initial move to the upside resulting in a much sharper move to the downside and then a sudden spike higher again.
So what now?
In addition to the support at 1.25987 from the daily chart, the swing high from last Friday at 1.25829 and 38.2% retracement of the upward move from this week’s low at 1.25689 are targets for the downside.
The GBPUSD had a choppy day today