Stops triggered
Recall from last Friday, the GBPUSD low stalled at a downward sloping trendline on the daily chart (see green numbered circles). The price of the pair rebounded off of that trendline level.
In the run to the downside today on the back of Powell's testimony, that trendline was broken, and with it triggered stops in the process. That trendline cuts across at 1.3272.
It will now take a move above that level to turn the bias modestly back to the upside on the failed break. Absent that, and the sellers remain in control.
On the downside, the low price reached 1.31929. That low was just above the high of a swing area going back to July through December 2020 between 1.3132 and 1.31885.
In between that swing area sits the 38.2% retracement of the move up from the March 2020 low. That retracement level comes in at 1.31644. The bearish bias would increase on a break below that swing area and the 38.2% retracement.
