Key area being looking at by the market
The GBPUSD has moved lower today after the Brexit break and run up yesterday, stalled near a topside trend line on the hourly chart (see below). The break occurred at the 1.3988-96. That was home to a number of swing levels (see yellow area and red numbered circles).
Today, we are back down re-testing that area (at 1.3988-96). It is also home to the 50% of the move up from the March 16 low (at 1.39876).
The price has dipped below that area to 1.3985 but with little momentum.
That area is a key area. What was a ceiling becomes a floor and the floor is being tested.
If the price breaks, the 100 hour MA and the underside of the trend line would be targeted at 1.3971. Below that, and we head back toward other MAs and trend lines.
If the price floor does hold (and so far it is doing so), a move back above the 1.4000 and then the 1.40113 (the broken 38.2% retracement) would be eyed for more bullish clues.
