Forex technical analysis: GBPUSD tests lower trend line

Technical Analysis

Author: Greg Michalowski | gbpusd

High today failed to extend on a break

The GBPUSD has been pushed down today on the back of lower wage data from the employment report.   Right before the report, the pair broke above a topside trend line. It was also trading at the highest level since a year ago on September 13, 2016.  That look above the trend line failed, the wage data was lower than expectations, the price fell. 

What now?

We are now testing a lower trend line at 1.3233.  Key intraday test off the hourly chart. hold and shorts will likely look to cover.  Watch 1.3253-60 as a correction zone on a retracement higher.  I would look for sellers near that area (see 5- minute chart below).

A break below and a test of the 100 hour MA (blue line on the hourly chart above) at 1.3197 will be the next target.