Support around this area comes not only from identifying it as a prior but also from a of the final upward swing in the prior move to the upside shown by the yellow Fibonacci levels. The range was derived from the 4-hourly chart, which shows the final swing more clearly.
The price range between the low labelled A and the high labelled B is divided by significant Fibonacci ratios. The 2.618 level coincides very closely with the prior . The market has already found support from both the green horizontal level and the yellow 2.618 level.
The white box represents the horizontal established between the green line and the 2.618 extension level. Also in the chart, a Fibonacci/Speed fan is constructed from the range between point X and point Y. Notice that the 0.25 acts as falling resistance for most of the downtrend from X. The market did break above the 0.25 for a short period, but has fallen back below. The price is currently enclosed in a triangle formed by the below and the falling from above. This triangle will end soon, forcing the market to break one of these barriers.
Breaking through one of these barriers will probably have a significant effect on price action for some time. Breaking below the could give the market enough momentum to take prices much lower.
On the other hand, breaking above the 0.25 could give bulls the boost they need to reverse the entire trend. It’s important to watch which barrier is broken in the next few days, but also the manner in which it is broken. The strength of the breakout could suggest the strength of the trend which will follow.