The GBPUSD has rebounded and in the process has returned to the highs for the day, and also erased the declines for the day. In addition the pair is retesting its 100 hour moving average 1.1520.
On its way higher, the pair moved back above a swing area at 1.1495. That level is now a close bias/risk defining level for buyers looking for more upside momentum. Stay above keeps the buyers more in control.
A move above the 100 hour MA, would have traders looking toward the falling 200 hour moving average (green line in the chart above). That 200 hour moving average is currently joined by the 38.2% retracement of the move down from the August 26 high. Both those levels are at 1.15937 (the 200 hour moving average will be moving lower however).
THe low for the day reached to 1.14042. That was just below the low for the year- taking out the pandemic low at 1.1408. However, momentum to the downside quickly reversed and sellers turned to buyers.
The failure is signficant. The sellers had their shot. They failed.
So for now, the buyers are making a play. Those buyers would love to see the 100 hour moving average broken. They would also like to see the 1.1495 level hold support.