Swing levels from August 24 and September 5th stall the fall
The GBPUSD moved below a lower trend line on the 4-hour chart earlier in the day and has been able to stay below since the break. The next targets came in at the 1.27865 – 1.2798 area. That is home to swing lows from August 24 and September 5 respectively. See earlier post outlining the target area HERE.
The Brexit headlines of tension within PM May’s cabinet, sent the price down to a low of 1.2788, where buyers stuck a toe in the water. The price stall at support, has sent it back higher with the price currently trades at 1.2813. The underside of the broken trend line currently comes in at 1.2827. A move back above that level, could solicit more short covering.
Buyers seem to have been waiting to take some profit at the support level. Can they now push back above the resistance?