New lows
The GBPUSD has extended to new day lows at 1.51565. The low from September 4 comes in 1.51564. That low was taken on on Friday with a move to 1.5134. Back on June 1, the low reached 1.5169. ON May 7, the low was 1.51627.
There were a few looks below the 1.5156 level on Friday, with five 5-minute bars dipping below. Not a lot of time spent below that floor level.
The "market" is already reacting to the failure to extend below the 1.5156 level today with the price moving to 1.5177 currently (see 5 minute chart below). Clearly, the market is not in a hurry to push much lower. Looking at the chart below the 1.5197-1.5200 is a level to get and stay above if the downside momentum fades. The 100 and 200 bar MA are at 1.5197 and the broken. 38.2% of the move up from Friday low is at the level. The midpoint of today is at 1.5198.
Yes, the price has more of a downside track over the last 4 hours, but the quick bounce off the 1.5156 level suggests the sellers are short term oriented (or at least just trading the levels/extremes). If the market is trading "levels", then look for sellers against 1.5200 to try and keep the lid on it. From there the traders can brawl it out until one of those levels are broken (i.e. 1.5200 or 1.5156) with momentum eyed.
