The GBPUSD has tested trend line support at 1.6092 for the second time. The 1st low for the day reached 1.6083 but was rejected (in the London morning session). The second look just recently, also has failed with the move reaching 1.6086 and finding buyers once again. UGH.
On the topside, the 1.6121-23 is the close resistance today. This is the 38.2% of the weeks range and also has been a floor and now ceiling area over the last few trading days (see chart below). Traders may also eye the 100 and 200 bar MA on the 5 minute chart for resistance on the correction (blue and green).
Overall, the action gives a slightly bearish bias. The price is below the close for the day, below the low from yesterday, below the 38.2% of the weeks range. The problem is can the market push the price back below the trend line on the daily and keep it below that level.
The second look at the trend line and second failure will not go unnoticed by traders. So look for buyers on dips with stops below new lows, but also look for sellers against topside resistance with stops above. It may be wishy washy, but that is what the market is saying.
