Old trend line (that keeps on getting broken and failing)
The GBPUSD has made London session lows and in the process is back down testing an old trend line that has been broken and failed on three occasions over the last few days. I keep the line is as after each failed break, the market seems to find support back against the line. We are at one of those tests now....
Will the pattern continue and we get a bounce?
Note: the bias still remains down for this pair as we continue to see lower highs. So if there is a bounce, if the buyers are to take control, they will need to do a bit more than what they have done so far. The high today was above the Monday low at the 1.2993 level and even the 1.3000 level but not for long.
Looking at the daily chart, the low for the day today tested a trend line connecting the lows from July and August. The line cuts across at 1.2940. The low after the BOJ reached 1.2943. A break below opens up more downside momentum.
