The GBPUSD moved to the lowest level for the year and the lowest low going back to March 26, 2020 in the . him early European session. The low price reached 1.08066, just above the natural support at 1.1800, before moving back to the upside.
Yesterday the price closed at 1.18886. The high price just reached 1.1902 and in the process is testing the 38.2% retracement of the move down from last Friday's high. The price also trades within a swing area between 1.1898 and 1.19083 (the Asian session high for the day).
Move above those levels and the 50% of the same move to the downside cuts across at 1.19308. The more important falling 100 hour moving average is at 1.19496.
On the downside now, traders will be watching the low from last week at 1.18753 as close support. Below that and the 1.18589 level would be eyed ahead of the extreme for the day, week and going back to March 2020.
In summary, the price break lower today failed.
Having said that there is work to do on the topside if the buyers are to take back more control. The price has moved down from a high price near 1.2331 on June 27 to the low price today at 1.1806. That is a move of around 525 pips in 12 trading days. As a result, a corrective move higher cannot be ruled out and is playing out in trading today. Get above 1.19083 and there should be more upside momentum.