The GBPUSD has continued its run to the downside today after rebounding in the Asian session. The price high reached 1.22069 before rotating back to the downside in the early European session.
On the way lower, the price move back below the closing level from yesterday at 1.21286. That takes the pair into negative territory for the 5th consecutive day.
The current price is trading at 1.2079. The price high 5 days ago reached 1.25969. The low price today reached 1.20613. That is a move of 535 pips over the 5 days. Traders will be watching the close from yesterday on any further upside momentum. Stay below still keeps the sellers more in control.
The move lower today did extend below a target area going back to May 2020.
Looking at the daily chart, the low price from May 18, 2020 reached 1.20729. As mentioned the low price today reached 1.20613. That break took the price to the lowest level since March 26, 2020 (during a Brexit plunge).
The price today has subsequently rebounded back above the May 2020 low and currently trades just above that level. Traders will use that level as a barometer for bullish and bearish in the short-term today. Momentum to the upside and we should see further probing toward the 1.2100 level, followed by the closing level from yesterday at 1.21286. The swing low from May reach 1.21543. That would be a another target on further upside momentum.
Conversely, move back below 1.20729 with momentum, and it would open the door for further downside momentum.
As I type the price is trading back down at 1.2070. The traders are debating the next move with 1.20729 as the barometer. The market is still not sure as price action is above and below the old low level.
