While the market focuses on the comments from Draghi, the GBPUSD has seen a bid enter and a move above the 1.6162 ceiling. The level was a floor until broken in trading today. The low today got close to the channel trend line but not quite. Today, UK Construction PMI came in at 64.2 vs 64.0. Although better, BOE Broadbent said that the economic recovery was not strong enough to warrant an interest rate increase and those comments took center stage, pushing the pair lower.
GBPUSD tests the 1.6162
Needless to say, traders looking for that bottom in the GBPUSD will want to see the price stay above this level and a move above the 1.61845 (the close from yesterday) as a point where they can breath a little easier. A move back below and the dip buyers might get scared.
Earlier today, the price extended above the topside trend line and 100 hour MA (blue line). This should have sent the pair higher. It did not. The disappointment on the break helped the traders to join the downside bandwagon. The MA and trend line are back in play as topside resistance. Until the price can extend back above these areas, the sellers remain in control in the intermediate term.
