Note the (?)

I have been looking at the GBPUSD charts looking for some clues from the price action/tools. And what I see is traders going fishing.

Let me explain.

1. Mainly lower.

Looking at the hourly chart the price is going lower with lower lows and lower highs generally. Yesterday the sellers leaned against the highs from August 5 and 8th. When the price fell below the 100 hour MA, sellers entered. A topside trend line (red circle 3 on top) held resistance).

2. Selective buying.

On Tuesday, the buyers leaned against the lower trend line. The low today sort of stalled near a lower trend line. "Sort of" is the qualifies. the low came in at 1.2935. The trend line was at 1.2924. That low was after breaking to new week lows below 1.29547 and should have gone much lower but it did not. So there was selective buying. What I like more about the price action since the low, is the hourly bars have seen buyers against the Tuesday low since the failed break at 1.2954. The selective buyers did show up at that level.

3. Narrow range.

The range for the week is only 160 pips.

4. EURGBP

The EURGBP is an influence

Be patient. You can try to be a selective buyer but sellers are more in control. Strong level at 1.3100 area. The 100 hour MA (blue line is also key. Closer in for right now, the buyers need to get above the topside channel trend line.

On the downside 1.2954 is key now. Go below, step aside. Then lows and the lower channel trend line.

Traders are fishing. They are catching some fish being patient from the long side and some fish being patient on the sell side. Like fishing, you have to be patient but if you feel a nibble, give it a yank (i.e. trade). You may catch something. It may not be huge but it might put some food on the table..