Trend line and London morning low tested. Also the close from yesterday tested.
It is hard to buy the GBPUSD but the pair is testing a trend line and the London morning session low. The price just dipped below each and has bounced a touch. Trend line comes in at 1.2935. The line was broken and the price skidded down to 1.2926. The London session low comes in at 1.2941. The GBPUSD closed at 1.2928 yesterday. There is not a lot of news out so markets can move back and forth. Taking out some stops and rebounding cannot be ruled out.
Helping the downward move is the EURGBP which has turned around after a corrective move lower into the NY opening. The price of that pair just moved back above the days midpoint and 200 bar MA on the 5-minute chart. at the 0.8050 area. If the GBPUSD is to bounce, it will need the help of the EURGBP as it seems to be the tail that may be wagging the dog.
