Tests support and holds though.
The GBPUSD has moved below trend line support at the 1.4338 level (currently). That is the bearish view. The bullish slant, is the low stalled at the 38.2% and near the highs from ECB Thursday at the 1.43137 area. The other thing to note is the trend since Feb 29, has been to the upside.
What about that yellow area above?
Looking at the 4-hour chart, it makes it easier to see. There has been a number of swing lows and highs in this area. We moved above that area on Friday. That surge to and eventually through that level all started when the 100 bar MA on the 4-hour chart held support on ECB Thursday (see chart below). That was the technical bullish catalyst for the move at least (the dollar falling across the board certainly helped).
Note that the last three looks above the yellow area since mid February has failed. The last move lower was helped by Brexit fears.
This current move lower today, may just be a backfill for a further move higher. If so, getting and staying above that area will be eyed. If that happens - and it happens soon, the upside would look more favorable. First things first - get back above the broken trend line.
