Pair trades between trendlines on the daily chart.
The GBPUSD fell in trading today with the help from some dovish comments from BOEs Carney earlier today.
Looking at the daily chart, the price tumbled to a low price of 1.30129, but found support buyers against that level. The low corresponded with the October swing high, and traders seem to lean against that level.
In December the price spiked above that level and raced to the 2019 high price of 1.35139. Admittedly, the price did move below the level for a week or so of trading later in the month before rebounding once again. However, in trading today, the level seems to be remembered (well traders can all see it) and buyers leaned against it.
Continuing to focus on the daily chart, the pair is trading between a topside trend line and lower trendline. On the top, the trend line cuts across at 1.3169. ON the downside, the trend line comes in at 1.2954 currently. Each of those lines are in play as the market decides which way it wants to trend from here.
Drilling down to the hourly chart below, the low price today also stalled near a lower channel trendline. That increases the levels of importance going forward (in addition to the support from the daily chart).
What now?
If the low is in place, look for move above the 1.30784 low from yesterday to give buyers more confidence. Above that rests a key resistance area defined by the
- 100 hour moving average,
- 50% retracement,
- topside trend line and
- 200 hour moving average
That area is between 1.3112 and 1.3129. Ultimately, if the buyers are to take more control, they would need to extend the price back above that cluster of technical levels.
The GBPUSD did find some support at technical levels today, but if the bottom is in place, there are still some key technical hurdles on the topside to get above. The battle is on.
