The GBPUSD moved lower earlier today, breaking to a new low not seen since August 5. The decline tested that prior low at 1.32594, where buyers stepped in to stall the fall. A sharp reversal followed after news that President Trump was preparing massive tariff increases on Chinese imports, triggering a strong rebound in the pound.
The rally carried the pair back above the broken swing area/floor between 1.3323 and 1.3341, and extended to a high of 1.3370. That move retested two key levels: the 61.8% retracement of the rise from the August 1 low at 1.3364, and the swing low from Wednesday at 1.33695. Sellers capped the upside at that zone, and the pair has since rotated lower.
Currently, price is holding within the old floor area around 1.3323–1.3341, where buyers are attempting to reestablish support. The failed downside break may prove to have been an exhaustion move, but for buyers to regain broader control, the pair must push back above the 100-hour moving average at 1.33887. A further break above the 200-hour moving average at 1.34227 would strengthen bullish momentum and shift the bias more clearly to the upside.
