50% and bottom trend line support hold the line on a test
The GBPUSD has not really had much in the way of upside love in trading today after the disappointing retail sales report. However, it the price has gone far enough and it hits a sweet spot from a technical perspective where risk can be defined and limited, traders will buy with stops below the level.
That sweet spot has been found.
It comes against the 50% retracement level at 1.55023 and a lower trend line connecting most recent lows at 1.5499. The low for the day comes in at 1.5499. Traders have taken the price modestly higher so far and will be looking for some more upside love (before it breaks lower - or so is the hope).
Looking at the 5 minute chart, the price has stepped lower, with corrections limited. The last leg down has taken the price from 1.5573 to 1.5499. The 38.2-50 % of that move comes in at 1.5527-36. If the sellers are to keep the pressure on, that area should attract new sellers.
