New lows for the GBPUSD...

5 July 2016, 19:31
Sherif Hasan

Tests the September 1985 low.

The GBPUSD has moved to new session lows and continues the fall to new multi decade lows. The pair is currently testing the September 1985 swing low at the 1.3045 level (the low comes in at 1.30413).   The weekly chart below takes us back to the the 80's

Searching around for other trend line targets...If you look at the daily chart and connect the lows from July 2015 to Jan and Feb, the trend line cuts across at 1.3015 area today.  That too will be a level to eye (closer to the natural 1.3000 level).

Drilling down to the 5-minute chart shows that the pair testing the 1.3045 level earlier on. That low bounced back to the 1.3091 area (the high reached 1.3095). The pair fell back lower. It did get above the broken trend line for 10-15 minutes but fell short of other upside corrective targets. The sellers remain in control with the 1.3015 the next stop.  With the range at around 250 for the day and 1.3000 as a big number looming as a backstop (risk defining level), I gotta think that there should be patient buyers leaning against the level for a low risk patient trade (or some profit taking too!).

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