The GBPUSD moved above the 2 month high today at the 1.5993 level and this ultimately led to some additional buying in the pair. The activity in the London session was choppy around the key level, however, with a low at 1.5964 and a high at 1.6035 – the midpoint of that range being ironically, 1.59997.
The price is dipping back below that level at this moment which may be the catalyst for the bias to switch back to the downside for the pair. The February high price of 1.59904 will be the next hurdle to get through on the downside to help confirm further downside potential.
Looking at the daily chart below, the price held resistance against the topside trendline connecting the most recent highs at the 1.6037 level. The high reached 1.6035 today. The holding of this level give sellers above/profit takers above something to lean against on any rallies. A move above this level targets the channel resistance at the 1.6090 area.
