The bounces this week were not inspiring
As the clock ticks toward the end of the week, the GBPUSD is ending well….weak.
Looking at the weekly chart above, the pair last week fell below a lower trend line and a swing low going back to March 2017, but rebounded off that break. This week, the break of the same swing low and trend line is threatening to close below (at 1.21085 and and 1.2100 respectively). If the price can close below that area, the technical picture is weak. Sellers are still in control.
Drilling to the hourly chart below, the pair yesterday, fell below the 100 hour MA (blue line) and a lower trend line. Staying below that MA line proved to tilt the bias to the downside. The GDP numbers today helped to push the price through a lower trend line on the hourly chart at the 1.2071 level. The low price reached 1.2055.
There has been a correction back up to the low from August 1 at 1.2079, but so far that run move higher has been able to stall just below that level. If the buyers cannot get the price back above that level (and stay above), the sellers are in firm control intraday as well. A move above could see the pair correct toward yesterday’s low at 1.2094. From there we will see if the buyers can push toward the levels from the weekly chart, or find the longer term sellers keeping a lid on the pair (below the 1.2100-08 area from the weekly chart).
For now, sellers are in control and the week is stilll looking weak.