Red line- resistance
Blue line- support trend line
Green lines- Fibonacci extension targets
GBPUSD is trading around 1.1291. Price has broken below the upward sloping support trend line coming from September lows. This is something bulls did not want to see. Price made a low at 1.1059, higher than the 1.0923 low from October 12th. Price bounced back up towards 1.1380 as a back test of the broken blue support trend line. So far we see a rejection at the back test. If price remains below 1.1380-1.1390, we should expect another new move lower towards 1.10-1.0950. Bulls want to see price break above the red horizontal resistance level at 1.1490 in order to open the way for a move higher towards 1.1630 and 1.2070. Short-term support is at recent higher low of 1.1050.-1.1060 area. A break below this level will be the a bearish signal. Concluding, although price seems supported thus far making higher lows, bulls need to surpass 1.1380 and the major resistance of 1.1490 in order to expect a bigger bounce. A rejection at current levels will be a sign of vulnerability for bulls.
