The 1.2786-98 support
The GBPUSD is scraping across support in the 1.2786-98 area in the new week.
Looking at the 4-hour chart, that area was swing lows from August 24 and September 5th. Last week, the price stalled in the area, but fell below on Friday – only to fail on that break.
On Monday, the area was tested but not broken.
We just edged above the 1.2798 level (see hourly chart below). If the price can stay above the yellow area, traders will look toward a corrective move toward the 100 hour MA (blue line in the chart below) and trend line resistance. That comes in at 1.28579 currently and moving lower.
Risk is low for those inclined to take a flyer on a correction. Of course Brexit risk remains real and is also a reason the pair is scraping along bottoms.