Falls to August 24 low
The GBPUSD tumbled on the more dovish comments from the BOE. The move lower has stalled at the swing lows from July 24 at the 1.5466. In fact my low comes in at a convenient 1.54664 level. Same, same....
The corrections has now taken the pair to the recent swing lows and the 38.2% of the move down today. Technically the 1.5560-64 area is an important line in the sand that if sellers are to remain in control, will have to stay below. The market price fell below this area on a few occasions over the last 5 or so days (yesterday it spent 6 hours below), but generally found support buyers in this area.
Volatility is likely to remain high. The US initial claims are out shortly. I am in no real hurry given the risks. Patience.
