GBPUSD has a volatile day, but bounces off a key support level

The GBPUSD experienced a volatile session today, similar to many other pairs. Following the Bank of England’s decision to keep interest rates unchanged, the price surged to a high of 1.33132. However, the momentum reversed after the US weekly jobless claims report came in better than expected, prompting a rotation lower. The price tested a previously broken swing area between 1.3221 and 1.3230, where buyers stepped in and pushed the price back higher.

The upward move has taken the price above the swing high from August 27 and 28, which stood at 1.32659. The current high is 1.3284, with the price trading at 1.32785.

As the day comes to a close, buyers remain in control. To confirm their dominance, it’s essential that the 1.32659 level holds as support. A more conservative stop level for buyers seeking further upside would be 1.3221, the low of the swing area. If the price closes below this level, sellers may regain the upper hand and overwhelm buyers

On the topside, getting above the high today at 1.3313 would have traders looking toward or .33581. Break above that and the door open for more upside momentum. The price would also be trading at the highest level going back to March 2022.

This article was written by Greg Michalowski at www.forexlive.com.