100 and 200 hour MA/trend lines
The GBPUSD stalled yesterday a few pips above the November 15 low. The double bottom gave dip buyers a risk level to buy against. Defined risk. Limited Risk. The price moved higher.
The rally today, however, is approaching a cluster of resistance defined by:
- Downward sloping trend line at 1.2806 currently (moving lower)
- 100 hour MA (blue line) at 1.2810
- 200 hour MA at 1.2814, and
- The underside of a broken trend line at 1.28156
Note also that the 1.2793-1.2800 has a number of swing levels
The cluster of resistance is giving the buyers a cause for pause. Like the double bottom, risk can be defined and limited against the area. Sellers are leaning. I would expect that if the mine field of levels can be broken to the upside that the sellers would turn around and buy. But for now, the sellers area leaning and looking for a rotation back lower (with the swing high from yesterday at 1.2775 and then 1.2765 as potential downside targets on a correction)
Taking a two week view of the pair, the price action is confined mostly to a low at 1.2722 and a high at 1.28828 (there was a run above the high but that was fairly quickly reversed and the old high reestablished the ceiling).