Something has to give..

The GBPUSD is keeping a lid on the rallies on the intraday 5-minute chart.

Something has to give..

Looking at the chart above,

  • the first run higher stalled at 38.2% retracement.
  • Then the 100 bar MA stalled the rally.
  • Now the falling trend line is putting a lid on the pair.

Admittedly, the price is not running lower off these levels, but the buyers are not really racing the price higher either.

At some point, something has to give and we will see the continuation of the move lower, or a break above and some covering.

PS. the low today stalled at a lower trend line (see hourly chart below). So there was a reason to buy technically (low risk). Buyers from below are still hoping the low is in place and a correction even higher, can continue.

GBPUSD corrective rallies keep on stalling at technical levels