Forex technical analysis: Will the GBPUSD continue to find the sellers?

Technical Analysis

Author: Greg Michalowski | gbpusd

A break below a support area is in question. Key test to start the US day

The GBPUSD fell below a floor area defined by a number of swing lows (and one swing high) going back to Feb 22. 


That area extends from 1.4032 to 1.4058. There have been 5 swing lows/high over the aforementioned period. 

The move below the level today, saw increased selling with an extension to a low of 1.4004.  The pair has bounced off of that key level ad is currently trading at the 1.4048 level - within our risk defining area. 

The question now is "Will traders come in against the resistance at 1.4058, or will they blast back above and muddy the waters.  

The high correction just got to 1.4048 and we are trading back at 1.4038.  The battle is on. So far the sellers are coming in against the 1.4058 level.  There are likely stops above that level now.  

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