The GBPUSD bottomed for the week in the 5th hour of on Monday. The price action topped yesterday early in the London morning session and momentum today accelerated prior to the GDP release (if you call a 27 pips move an acceleration ; ) ). On the release, the low was reached against the 38.2% and the shorts covered (up toward broken trend line resistance – see chart above).
The subsequent low found early buyers against the 38.2% level as traders are playing it safe before the US Durable Goods data. A move below the 38.2% (stronger number) and look for a test of the 100 hour MA at the 1.5802 level. A break below this key MA would likely lead to an increased momentum move lower.
Shorts would likely be concerned on a break back above the 1.5851-58. This was the Asian session low and near the 200 bar MA on the 5 minute chart. The 1.5858 is the intersection of two trend lines.
With the low to high trading range at 48 pips, there can be action either way. So although the bias is down a bit today, traders need to be nimble.