Tests trend line on the daily
A long trend line on the daily chart of the GBPUSD cuts across at the 1.3118 level. That trend line was broken on Thursday last week, moved back above on Friday and today the old line is being tested now. The low just reached 1.31154 and bounced. We currently trade at 1.3125 area. Getting below and staying below the trend line level will be more bearish.
Drilling to the hourly chart below, the pair stalled on Friday (and today) in a swing area (see yellow area and red numbered circles) at 1.3203-16.
The price in the London morning session stalled above and below the 100 hour MA. With the help of the North American traders, the price has broken lower (and away from the 100 hour MA) to test the 1.3118 level from the daily chart. A move below will look toward the 1.31015 level (swing area from hourly) and below that... the pair will track the low extreme from last week at 1.3049. Risk for shorts will now be the 100 hour MA.
