Forex technical analysis: GBPUSD retests broken trend line, but sellers more in control

Technical Analysis

Author: Greg Michalowski | forex-technical-analysis

Line cuts across at 1.3544 today. The 1.3532 was the post-Brexit high from 2016. 

The GBPUSD has rotated lower after surging higher on the first trading day of the year yesterday. That move was the 5th up day in a row. The price moved from 1.3346 to a high today of 1.3612.  The move higher took out the highest post Brexit high from 2016 at 1.3532 and also moved above a trend line. That trend line cuts across today at 1.3544. The low today just reached 1.3543. The area from the 1.3532-44 is a support target for today.  A move back below would be more bearish. Stay above and the buyers are more in control.  

Drilling to the hourly chart, a break below the 1.3532-44 area would look toward the 50% area at 1.35179.  The lower trend line (rising) at 1.3508 currently and the rising 100 hour MA at 1.3500 area would be lower targets on a break.   

Find support buyers in the yellow area and the market corrects, but I expect the correction to be somewhat limited. The pair has been on more of a trend lower in trading today.

Looking at the 5-minute chart below, the trend move lower is most evident.  The price corrections have been shallow and is well below the topside trendline.  We are currently testing a lower channel trend line. A correction higher off support, would likely be capped by the topside trend line. 

Sellers more in control, but support being tested.