Retests the 50% midpoint at 1.39541.
The GBPUSD soared yesterday after basing near a swing area between 1.3846 to 1.38558 (was swing lows and highs going back to early March including highs last week before breaking on Friday). The price moved back above 100 bar MA on the 4-hour chart, raced above the 38.2% at 1.3886 and the 50% retracement (from the Feb 2021 high at 1.4240) at 1.39541.
The rally continued in the Asian session today, but stalled that rally at 1.4008 in the late morning session. The price has rotated lower in the early NA hours. The high today stalled in a swing area between 1.3998 and 1.40167. The natural resistance at 1.4000 was between that swing area as well helping to tilt the bias back to the downside on corrective selling (after the sharp run higher).
The move back to the downside, has seen the price revisit the 50% midpoint at 1.39541. THe current price is at 1.3958. The low reached 1.39491.
Traders will likely watch that level as a barometer for the buyers and sellers today. The buyers are leaning now against the level. However, my guess is a move back below, and the buyers can easily switch to the sell side. The 1.39175 swing high from April 6 would be the next target on more downside selling.
Drilling to the 5 minute chart below, the trend higher yesterday saw the price remain well above the 100 bar MA for most of the day. Today the price traded higher but more sideways. When the sellers moved back below the 100 and rising 200 bar MA (green line), there was some more selling. It will take a move back above the MAs now to give buyers more confidence.
Close support off the chart is now at 1.3942 (swing lows) and the 38.2% of the trend move higher yesterday at 1.39319. Move below would have traders looking toward the 1.39175 level from the 4-hour chart.