GBPUSD corrects higher toward the falling 100 hour MA and swing area.

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• Early sellers against the topside target

GBPUSD runs up toward the 100 hour MA

The GBPUSD spiked higher on the weaker US data (the USD is the weakest of the major currencies).

The run to the upside saw the pair move up to a high of 1.1877. That got within sniffing distance of the falling 100 hour MA (blue line) at 1.1886, and also a swing area (from the swing low of July 21) at 1.1890. It will take a move above each to swing the bias more to the upside. The price is currently making a run back toward the highs and those key technical targets on the topside. On a break above, traders will eye the 1.19158 to 1.19242 swing area, along with the 38.2% retracement of the move down from the August 11 high at 1.1930.

Drilling down to the five minute chart below, the correction off the initial high came down toward the 38.2% retracement of the trend move higher off the most recent intraday low. Finding support between the 38.2% – 50% "correction zone" (yellow area in the chart below), keeps the buyers in more control.

GBPUSD retraces into the Correction Zone area and bounces

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