The dip buyers tried for the second day in row to retake a broken level but failed. Will it work the 3rd time though?
Looking at the daily chart of the GBPUSD, there is a floor that cuts across at 1.34560 to 1.34667 (see red circled numbers).
Going back to December, there was a swing high at 1.3461, then a break and a successful test of the level in January.
The run to the 2018 high, and subsequent fall came back to that break area and stalled (see red circles 3, 4, 5 and 6). In addition, those swing levels were joined by the 38.2% at 1.34667.
All that stuff there at 1.3456-667 makes that are the line in the sand today. Stay below more bearish. Move above and I think the sellers give up and the buyers take control - at least for the day.
Now the price did trade above that area both yesterday and today. True, and the buyers had their shot to take control. They failed. So I have to give the nod to the sellers. However, the third try might just be the charm. At least that is the way I see it.
We will see if the sellers can keep the full control.
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