38.2% comes in at 1.39546
The GBPUSD has chopped higher today after an really dip in the Asian session. Recall yesterday, the GBPUSDs price initially moved above its 200 hour moving average (green line in the chart below) for the first time since February 26 and failed twice. However, late in the day, the pair moved above for the third time and it proved to be “the charm”.
The 200 hour moving average currently comes in at 1.39012. It will continue to be a key barometer on the downside for buyers and sellers. The move above – and staying above – was a step in the bullish direction and increased the buyers control in the short term at least.
The chop higher today has also been able to get above another target at the 38.2% retracement of the move down from the February swing high (and highest level going back to April 2018) at 1.39546. Getting above that is another minimum requirement for the buyers to take control. Intraday traders will be eyeing that level as close support now. Buyers won't want to see momentum developed below the level (should see some liquidation if the pair starts to trade more comfortably below the level).
On further upside momentum, there is modest resistance at 1.39799 (was a swing low going back to February 22). Better resistance comes in between 1.3998 and 1.4009. That area represents swing levels going back to earlier in the month along with the 50% retracement of the move down from the March 2021 high (at 1.4009). The natural 1.4000 resistance is also in that area of course.