The GBPUSD has pushed above the close from yesterday at 1.5110 and has just squeezed out a new high for the day as well.
GBPUSD back above trend line on the weekly.
The pair reached a new low going back to July 2013 and in the process moved below trend line support connecting the low from 2010 and 2013. Yesterday, that line was breached and failed (see post:Forex technical analysis: GBPUSD takes another ounce of flesh but is there a good enough reason to buy?) . It seemed the market was not totally ready for a correction to begin.
Today, we moved lower again and made new lows – falling below . Is the market telling us a low is in place? Look for short term risk at the 1.5100 level now.
I am not keen on this idea through the employment report – unless there is some profit – but if the 1.5100 level holds now, there could be a push higher with 1.5142 and 1.5175 targets in the short term (see hourly chart below)
GBPUSD hourly chart.
