Can the chop slow
The GBPUSD has moved to new session lows and in the process have move below trend line support at the 1.2938. Sellers are trying to take more control. Keeping below the line will now be eyed by shorts.
The concern - especially in this pair - is the choppy conditions seen in this pair over the near term. Today, the price rallied higher and tried to stall ahead of the 1.3000 level. However, there was a spike higher that took the price high to 1.3014. Frustrating.
Since the peak, however, the price action has been more bearish. The pair did test the trend line (red circle 4) and rebounded. You expect that. Now that the line is broken, sellers will want to see more downside. Can the sellers remain in control? The 50% of the move up from the May 12th low comes in at 1.2944. Stay below to keep the sellers happy.
