GBPUSD bouncing toward swing area and topside trend line

Technical Analysis

Author: Greg Michalowski | gbpusd

The 1.2314-16 area and topside trend line at  1.23216 eyed

The GBPUSD moved lower into the London session but could not get to the low from yesterday at 1.22509. The low for the day reached 1.22567 and bounced. Note that yesterday's low did dip below a lower channel trend line only to bounce quickly higher (see blue numbered circles). Buyers seem to have found a downside limit to lean against (for now at least) 

The 1.2314-16 area and topside trend line at  1.23216 eyed 
On the topside today if the price is to go higher,  the Asian session high stalled near the low from last Friday at the 1.2314-16. That swing area - followed by the topside channel trend line at 1.23216 - are the upside targets to get to and through IF the buyers are to take back more control.  Failure to do that and the pair is remaining in the downward channel.   A move above should open the door for further corrective action to the upside. The swing low from June 19 at 1.2334 followed by the 38.2% at 1.23618 and the falling 100 hour MA at 1.23707 would be targeted.   


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