Modest rebound
Yesterday, the GBPUSD fell below a trend line on the daily chart. Today the underside of that trend line was tested at the highs. The level held and the price continued the move lower (see daily chart below).
That move took the price below the swing lowss from July 2017 and August 2017 at 1.2811 and 1.27728. The low reached to 1.27223. The price is currently at 1.2760 after moving up to a corrective high of 1.2769 - just below the August 2017 swing low.
Drilling to the hourly chart, the move lower today fell below a lower channel trend line twice. Each has failed, but the rebounds are not exactly running higher. The trend line comes in at 1.2740 now. That line will be eyed by buyers and sellers if there is a retest today. Stay above and there could be a rebound into the weekend. Move below and the bears are fully in control.
Taking another step to the 5 minute chart, the pair just tested the 100 bar MA (blue line) at 1.27669 currently. That MA stalled the rise so far, but the price is not far away. Traders - in the short term - will be eyeing that MA line for intraday clues.
It is Friday, and although the trend this week is down, there can be weekend flows/profit taking by "traders", but overall, the bears remain more in control.
