GBPUSD backs up into a broken target support area | Forexlive

The GBPUSD raced higher in the New York session. The price was at 1.1287 at the start of the New York session and reached 1.1439 before rotating back to the downside of the last 3 or so hours of trading. In the process the pair moved above a swing area between 1.1350 and 1.13643 and entered into a wider swing area that confined the pair between 1.1404 and 1.14595 going back to September.

After the reverse back to the downside, the pair is now retesting the lower swing area between 1.1350 and 1.13643 o (see green numbered circles). A move below that level would disappoint the buyers.

Looking at the weekly chart, going back to 2020 the two lowest lows from the Covid decline can between 1.1408 and 1.14454. The high price today reached between those levels at 1.1439. Staying below that area could give the sellers some hope that the high is in place.

On a break above, the 50% of the move down from the May high comes in at 1.15097. That would be the next upside target.