Trend line above stalls the rally today

The GBPUSD is lower on the day but the fall has had its limit.

The fall took the price to 1.3330 today. That was near swing lows on the 4-hour chart at the 1.3329 area. There is something about that level - at least this week.

On the topside, the pair tested the old trend line at the 1.3380 level and fell off. Yesterday, that trend line was broken. The price should have gone higher. The break failed. That laid the pipe today for the sellers to lean back against the old trend line today.

Overall, the pair has more of a bearish bias.

  • The price is below the 100 bar MA on the 4-hour at 1.3405
  • The price is below the trend line at 1.3380
  • Not shown, but the price is below the 200 hour MA and 100 hour MAs ast 1.33726 and 1.33679 respectively (close risk now).

What gives sellers cause for pause is at the 1.3329-30 area. That floor that has developed needs to be busted. That would open the door for the next hurdles at 1.33083 and then the lows from last week at 1.3300 and the 50% at 1.32938.