More bearish today. Correction is key.
The GBPUSD stalled at the highs today near an area that was defined back on November 1 and November 2 and more recently in trading last week (see red circles). That area comes between 1.22748 and 1.22835. Admittedly, the pair traded above and below the level last week, before moving lower on Friday. That break lower failed and the pair rebounded into the area - and above it - by the close in trading on Friday. Today, the lower opening took the price back below that area and apart from a few pips above in the Asian pacific session, the price has stayed below. That is more bearish and we have seen the price move lower in the London session.
Looking at the 5 minute chart below , the price has corrected to a intraday resistance area defined by the 38.2%, the 100 hour MA and the Asian session low at 1.2259-62 area. That is a test of the bearish bias intraday. Stay below and the downside bias remains. Move above and the waters get a little more muddy.
The sellers are in control. Can they stay in control for trading going forward. Key test.