Sellers may be tiring.
The GBPUSD moved to a new 7 week low (lowest since September 5th) and in the process fell below a lower trendline on the hourly chart (see red circles in the chart below). That should have sent the pair lower. Instead we have seen a bounce. Is the market tired? The trend line can be a level traders can lean against as risk for those looking for a corrective bounce trade. A move below the trend line would not be welcomed by any dip buyers.
ON a move back higher the low from yesterday at 1.29356 will be eyed as a level to get back above (and give dip buyers some breathing room).
Looking at the 5-minute chart below, the 50% of the days trading range comes in at 1.29385. The hundred bar moving average is at 1.2943 (and moving lower). Moves above each is another step in the bullish direction.
Fundamentally,the market is worried about the Brexit situation with the cabinet minister meeting today quite contentious (according to sources). Headlines can take the market any which way, so be sure to protect positions with stops.