GBPUSD rebounds back above 1.3300
Low swing areas in play in the GBPUSD after plunge
The GBPUSD tumbled lower today on the swinging of the pendulum to a no deal Brexit this week.
Technicals also played a role. The GBPUSD fell below a trendline and swing area on Friday (see blue numbered circles) and today, the pair cracked below the 100 hour moving average (blue line at 1.34035 currently) and the 200 hour MA (green line at 1.33774 currently). Selling intensified. The price tumbled.
The low for the day extended below a initial swing area between 1.33029 and 1.33116, and a lower swing area between 1.3283 and 1.32913 (see green and red numbered circles).
The momentum to the price only down to 1.32237 before stabilizing and starting to rebound back higher.
The price has since moved back above the lower of the 2 swing areas (between 1.3283 and 1.32913), but the correction as is so far stalled in the upper swing area (between 1.33029 and 1.33116). A move above that level should see more upside probing from a technical perspective.
Drilling down to the 5 minute chart below, the price is currently testing the 100 bar moving average at 1.33087. The 38.2% to 50% retracement of the days high to low trading range comes in at 1.33046 and 1.33298. That area will be eyed for resistance. Move above and a rotation toward the falling 200 bar moving average at 1.33656 would be eyed (if the price can stay above the correction zone.