After a couple of big down days....
After a couple of big down days and a new 31 year low today, the GBPUSD is getting a bit of a bounce and trades higher on the day.
Looking at the daily chart, the pair got close to trend line support at 1.2674 area. The low extended to 1.26845. New highs for the day are being printed now at the 1.2763. The close yesterday was down at 1.2726. The last couple of hourly bars have bottomed at 1.27265 and 1.2728 respectively. Back in black for the pair.
The next key level to target on the topside comes in at 1.2791. That was the low from July. I would expect that if the sellers are to remain in control, that area would provide a ceiling to lean against.
For now, the dip buyers near the lower trend line are more in control. The better US data today (nor May's speech) have not led to selling of the pair (buying of the dollar or continued selling of the dollar). So the shorts are taking a little off the table - or so it seems.
