Reaches 1.5300 and stalls the fall
The GBPUSD has pushed to new lows in the last hour, tested the next target (and 1.5300 as well) and is seeing a bounce now. The chart has characteristics similar to the what was seen in the EURUSD (just saying).
The target (see earlier post) was against lower trend line at the 1.52947 level (currrently). The low came in at 1.5300. Buyers/profit takers could not resist the low risk area. The range for the day extended 135 pips - close(r) to the 158 pip average range. The low was a good place to set the low. Can the pair move higher?
Looking at the 5 minute chart, the last leg down (from the earlier NY low correction) took the price from 1.5366 to 1.5300. The correction of that leg lower has stalled at the 50% retracement level at 1.53336. If the bottom is in (like it was for the EURUSD), we should see a move above that 50% level to help confirm the low is likely in place. Currently, the price is between it and the low support.
So, the dip buyers against the 1.5294-1.5300 support have no worries. The question is, can the buyers start to pressure more shorts into buying? That will need to see a move back above that 1.5333 level to confirm some of the sellers are turning back to the buy side....Not seeing it yet.
