If you are looking for a barometer in the GBPUSD, look at the 1.35526 level.
That level is home to the:
- 100 hour moving average
- 200 hour moving average
- 50% midpoint of the 2022 trading range.
The price action in the early Asian session today opened above that area. However after moving below the level in the Asian session, the price has stayed below.
The run to the downside did tests and briefly extend below its 100 day moving average at 1.3500 (the low reached 1.34944). Although the price move below the natural level (the EURUSD and the USDJPY both stalled at the natural big figure level on their respective price action today), the pair did successfully test a swing area between 1.3489 and 1.34988 (see red numbered circles).
So there is a reason on the downside for the dip buyers. There is also a reason (or three technical levels) on the topside for traders to lean as well. Traders will look for a break outside of those levels with momentum to build on another leg either to the upside to the downside (on the break).
