Break lower today failing?
The GBPUSD moved higher in Asian/early European trading, but found willing sellers against its 100 hour moving average (blue line currently at 1.41225 in the chart below).
The sellers push the price lower and after an initial stall ahead of yesterday’s lows near 1.40692, the pair cracked below that low and and lower trend line connecting lows from June on its way to a low of 1.40335. That was the lowest level going back to May 13.
However, in early NY trading, the price has rebounded higher (all the GBP pairs are showing more GBP strength), and has now moved back above the
- Broken trendline at 1.40629,
- The low from yesterday at 1.4069,
- The low from last week at 1.4072 and is
- Now testing the low from June 3 at 1.40852 (the corrective five has reached 1.4085).
Failure? It is not looking all that great to be honest.
Drilling to the five minute chart below, the pair is trading above and below the midpoint of the day’s trading range at 1.40807, but just below the 100 bar moving average at 1.40876. A move back above that MA and the 200 bar MA would really upset sellers. On the downside, a move back below 1.40695 (swing low from yesterday and broken 38.2% of the range today), would give sellers some hope that the correction is over.