Trend line at 1.2900 currently
The GBPUSD has been trending lower over the last 7 or so trading days and in the process, has stayed well below the 100 hour MA. Below the MA is a channel trend line. Today that trend line was tested on two separate hourly bars and each found modest sellers.
That line comes in at 1.29000 currently (and moving lower). Stay below is more bearish. Move above and it could solicit more short covering in the pair.
We currently trade at 1.2887. That is above the closing level from yesterday at 1.2881. The price has traded above and below that closing level over the last two hours. The market is waffling after the weakish US data today (lower yields).
Looking at the daily chart below, the price low came in at 1.28409. A lower trend line comes in at 1.2838. Yesterday, the price also tested the line, and found buyers.
Admittedly, the holding of that line give dip buyers a reason to stick a toe in the water. Stay above, and a rebound can develop. Buyers, however, still need that move above the trend line on the hourly chart above to give more confidence.
Intraday, the price action is not all that bullish or bearish. In fact it is very choppy. The price has traded above and below the 100 and 200 bar MAs at 1.2878-79 currently. The middle of the range is between the 1.28678 and 1.2889 (see yellow areas). Trading has taken the price above and below those levels with failures on each run. So it may not be trustworthy, but in the ups and downs and technical support and resistance holding (at trend lines), traders will look for little nuances of price action to suggest buyers or sellers are taking control. Trading outside those ranges will be eyed for momentum clues.
