The GBPUSD has seen more buying momentum in the early US trading session.
The price has move back above the 1.1100 level. The price is trading above and below that natural support resistance level.
The low for the week on Monday reached an all-time low of 1.03535. The high for the week was reached earlier today at 1.12338. That is a range of about 880 pips for the week. Last week the range was over 600 pips with most of them price action to the downside. The price closed last Friday at 1.0884.
The high price today took the pair above the 61.8% retracement of the move down from the September 13 high at 1.12085. That level was also a swing level on September 22 and September 23 before the plunge to the downside on Friday and Monday of this week.
Technically, the low price today found support buyers against its broken 200 hour moving average currently at 1.1013 (see green line in the chart above). The underside of the broken trend line was also near that moving average level. The inability to break below that level gave the dip buyers some confidence for the move back to the upside.
At the 1.1100 . The price is trading between support defined by the 200 hour moving average below at 1.1013, and the 61.8% retracement and swing area at 1.12085. Overall the short-term bias is probably little in favor of the buyers above the hourly moving average levels and above the downward sloping trendline on the hourly chart above.
Having said that, looking at the daily chart below, the move higher today did extend back above its broken trend line, but the current price is now back below that level near 1.1150. The inability to reenter above that trend line is a hurdle that would need to be broken. The 50% midpoint of the move down from the August high at 1.13232 is also a target that would need to be broken to increase the bullish bias on the daily chart.