After a trend-like move, the corrections help to define the breadth and support for the trend. If the 38.2% retracement of the trend run holds, that is indicative of support buyers looking to hop on. If that level and the 50% of the same move are both broken, that is generally not good for the trend move.
Looking at the 5 minute charts of some of the major pairs the 38.2% are so far holding. That keeps the buyers in control. It does not mean they will stay that way, but “so far, so good.”
GBPUSD: The GBPUSD run up has the 38.2% at 1.2378. The 38.2% area found support buyers near 1.2378. The 50% is at 1.23579.
GBPUSD holds support at the 38.2% retracement
EURUSD falls toward the 38.2% retracement and finds buyers
USDJPY stays below 200 day MA
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