Tests post Carney corrective low
Last week, BOE Carney surprised the market with some hawkish comments that sent the GBPUSD sharply higher. The corrective low on that day reached 1.2915. The low today reached 1.29125. We currently trade at 1.2920. Is the market watching that level? It seems that way. Stay above is more bullish. Move below and there is the potential for more upside.
A move below that level will look toward a lower trend line cutting across near 1.2901 and the 200 hour MA and 38.2% of the move up from the the June 21 low coming in at 1.2858 (200 hour MA) and 1.28605 (38.2%) respectively. That area was also near the swing high from Jan 26th at 1.2860.