Testing a topside trend line
The GBPUSD is extending to a new session high and in the process is testing a topside trend line near the 1.2989 level. The price is currently testing that trend line. Will the sellers come in and lean against the level? Risk is defined risk is limited. If there is a break with momentum look for stops.
The pair has been trending with the decline in the dollar. On Monday and Tuesday, the 1.2903 level stalled the rally. But the correction lower stalled just ahead of the 38.2% retracement (and correction zone) between 1.2810 and 1.28324. The low price reached 1.28374.
The pair has since trended back to the upside. The current correction zone comes in at 1.2929 down to 1.29117. The rising trend line cuts across within that area as well. If the trend is to lose momentum, moving below those levels would be needed.
Closer support/risk comes in at 1.2952. That was the high from yesterday. Since breaking above today, the level has NOT been rebroken. It would take a move below that level to tilt some of the intraday bias back to the downside.
So topside trend line is being tested. Will there be some profit-taking? Buyers nevertheless still remain in full control with the minimum requirement for the sellers to be a move below the 1.2952 level to take back some control.
