GBPUSD falls sharply but rebounds. The 1.4854 level key level on downside now
The 1.4854 level is the 61.8% of the 2009 low to high trading range. The price plunge this morning took the price down below this level to a low of 1.4782. The corrective move higher has taken the price back above the key retracement level (1.4854) and as a result, this level will now be eyed as support once again on dips.
On the topside look for sellers against the 38.2% of the days high to low trading range. That level comes in at the 1.4943 level. This also corresponds with the first low on the move down. I would expect sellers against this level with stops on a break above the level. See the chart below for the levels.
The low for the day extended to 1.4782. The last time the market traded at this level back in March to April 2009, the level was a ceiling on a number of occassions (see numbers on the chart below from 2009 period). Today, the market used the level as support on the plunge lower. The level will continue to be a level of importance should the market break back below the key 61.8% retracement support level at the 1.4854 level.
(Aug 30, 2010)
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