The GBPUSD is testing some key technical levels on the hourly and weekly charts.
First a look at the hourly chart.
The GBPUSD has a choppy but down day. The pair tumbled lower in the first hour of trading but recovered, traded sideways and waffled back and forth with a downward bias. What has been consistent in the last couple of days is the support at against the lower channel trend line on the hourly chart. The pair found support buyers against it yesterday. Today (sans the initial plunge), the price has reestablished support along the line. The current bar is dipping below this level. The corrective bounces have been minimal.
GBPUSD tests lower trend line on the hourly chart.
Looking at the weekly chart, the price is down testing the lower trend line at the 1.5086 level (See chart below). This trend line connects the lows from 2010 and 2013. The price low 1l.5085 . Key test for the GBPUSD.
Although the support may hold, be aware for a tame bounce followed by a look below the trend line. In the short term, a bounce that is real – with profit taking buying and others buying the level – should see the price move back above the 1..5100 level and stay above (would really line to see above 1.5104) If the pair is not able to extend back above this level (it would take the price back above the trend line on the hourly chart in the process), it is indicative of a a market that is still more bearish with the sellers in control (it could be that buyers are feeling real nervous as well). So dip buyers be on alert. The level is tempting but the “market” might want to get more ounces of flesh from the fear of the buyers.
GBPUSD tests lower trend line at 1.50855