Tests topside channel trend line now
The GBPUSD got destroyed before Carney. Once he started to talk (headlines), the selling turned to buying and we have seen the price move from a lower trend (see earlier post outlining the level), to now the upper trend line (at 1.2152). The high of the correction moved up to 1.21495 - just short of the trend line level. That line was resistance. Yesterday it was broken and then was support. Today, the fall below it earlier, triggered more selling pressure.
Sell the rumor. Buy the fact? It seems that way today.
The rise from the low retraced above the 38.2% of the day's trading range. If the sellers are to keep control, holding that topside trend line would be somewhat ideal. IT does not mean that the price will head to new session lows, but it does keep the pair between the guard rails that have ping ponged the pair over the last 5 or so trading days.
A move above muddies the water from a technical perspective.