New lows in the GBPUSD and gets closer to the January 18 swing low at 1.35188.
The GBPUSD has made new lows and in the process is testing the January 18 low at 1.35188. The low price just reached 1.35199 just a pip or so from that low.
A move below that level would have traders targeting the January 11 low at 1.34498. That is the low for the calendar year. The high for the year was reached on June 2.
Drilling to the five minute chart, the corrective move off of the initial low fell short of the 38.2% retracement of the last trend like down (from 1.36153 to 1.35299). The price has waffled higher and lower but keeps the bearish bias intact. Putting in another way, the buyers are not taking back any control.
WHat would change that now?
The falling 100 bar moving average on the 5 minute chart below comes in at 1.35574 (see blue line). Should the price be able to get above that level, it would be a intraday victory - albeit a small one. Nevertheless, it could lead to more upside corrective probing. Until then, the sellers remain in firm control.