Seeing a bounce of trend line support
The GBPUSD is lower on the day, but has bounced off trend line support at the 1.5256 level (the low reached 1.5259). The pair is now up looking to get and stay above the 200 bar MA on the 4-hour chart. Getting and staying above this line would be step one in the recovery process for the pair.
Looking at the 5 minute chart, the 38.2-50% of the move down from the high comes in at the 1.5307 and 1.5322 respectively. The 100 bar MA comes in at 1.5317 currently (moving lower). The high price after the initial claims came in at 1.53158. If the price is to squeeze higher from here, traders will be looking for this congestion area to give way.
The recent move has been down (4-hour above). It can be more corrective of the move up from April. So the test and hold is the market probing to see if it will be a bottom. The next step technically, is to see if the market can take out some other targets - starting with stuff on the 5-minute chart. It is a market test.
