The GBPUSD is trading to a new session low of 1.2375. That takes the price to the lowest level since May 19. The next downside target comes at the 61.8% retracement of the move up from the May 13 low at 1.23498.
The sharp move to the downside after the CPI data took the price below the 50% retracement at 1.2410 and a swing area between 1.2400 1.24107. Stay below that level keeps the bears fully in control. Above that there is resistance at a another swing area between 1.2429 1.24355 (see red numbered circles).
Recall from yesterday, the price high for the day stalled right near the 200 hour moving average. That was the 2nd consecutive time that the sellers leaned against the 200 hour moving average, and it tilted the bias back to the downside into the close. Bearish.
In the European session, after a corrective move to the upside stalled well ahead of the falling 100 hour moving average (blue line), the buyers turned to sellers and pushed below the 38.2% retracement and a swing area between 1.24579 and 1.2473. Sellers were taking charge and were rewarded after the higher CPI data in the US.
Taking a broader look at the daily chart, the end of May high stalled within a swing area between 1.2634 and 1.26737. That corrective move also was well short of the 38.2% retracement of the 2022 trading range. As a result the bears remain firmly in control in the longer term.
