Mabel worked 60 hours at the hospital this week, so all she did on her day off was LOUNGE on her couch and watch movies.

Which type of context clue is used to help readers understand the capitalised word?

The context clue used in this sentence is an example of a definition clue. The word "lounge" is followed by "on her couch and watch movies." The phrase "lounge on her couch" provides a definition of the word "lounge" in this context.