GBPUSD moves to another low
The latest is PM May is to tell her cabinet that she will go to Brussels to look for a better deal on the backstop. The report is May wants to get a legally binding assurance that the UK won't be bound in the backstop indefinitely. The EU already said, no new deals. So, the uncertainty continues to weigh on the GBPUSD.
Technically, looking at the daily chart, the pair is looking toward the June 18 low at 1.28885 low. The pair has reached 1.26105 so far.
Drilling to the hourly chart, the pair may be finding a dip buyers against a lower trend line at 1.25075 (got within 3 pips of that level). If the price can hold that level, there may be a corrective bounce. The low from last week at 1.26612 should be resistance on a rally higher.
Now....it takes the courage of 1000 matadors to stick a toe in the water for the pair from the buy side, UNLESS the risk can be defined and limited. The trend line on the hourly chart, gives the dip buyers a risk defining reason to buy (to dance with the bearish devil), but don't mess around with the pair on a break BELOW that line. The price is trending lower. So if you want to take a shot, be sure to have the stop in place on a break. It does not make sense to dance with the devil for too long.
