GBP/USD eases to a low of 1.2348, the lowest level since 9 April
Cable looks like it is finally breaking away from its range game between levels just above 1.2500 and the 1.2400 handle. As price takes a peek under the key support region, we are seeing sellers start to exert more control in the pair.
Right now, price is testing support from the 61.8 retracement level @ 1.2350 but beyond that a run towards 1.2300 will be on the cards next.
Looking further out, the key test to any major downside move will be the 7 April low @ 1.2166. If that gives way, there is not much stopping a move towards 1.2000 and below.
That said, let's take things one step at a time. For now, the pair is moving lower on broad dollar strength and potentially financial concerns amid the plunge in oil prices.
As such, be wary in case the Fed decides to stick its finger into the pot once again.
