The GBPUSD made a new low on Monday for 2022 (and going back to March 2020) and bounced. On Tuesday another new low was made and the price bounced. Today there was yet another new low and we are seeing another modest bounce back higher.
Looking at the hourly chart, the price bounce today came near a downward sloping trend line (see red numbered circles). Buyers keep on sticking their nose in the water, grab a drink but admittedly, the upside has been limited.
The topside off the NY session low has tried to get back above the Monday high at 1.16465, but so far sellers have slowed the rise. A move above would also need to get above a downward sloping trend line at 1.16629. Get above it would give the buyers more satisfaction. That is what they will be looking for and would give them the opportunity to push for other targets.
NOTE however, that those breaks (above 1.16465 and 1.16629) are the minimum to give buyers more confidence/control. The high for the day, and the 38.2% at 1.17151 of the move down from last week's high are still other targets, as is the falling 100 hour MA which is moving toward the 38.2% (currently at 1.1722).
Those levels are the REAL minimum targets that would need to be broke if these dip buyers are to be taken more seriously.
Absent that progression, and the sellers are still holding the stronger hand.
Nevertheless, for short term traders, watch the low from yesterday at 1.16205 as close support. Move below 1.6000 and the lower trend line increases the selling pressure on the pair. PS The 2020 low from the pandemic ....1.1403. That is still a ways away, but would be targeted on more selling momentum.
