The GBPUSD is down for the 4th consecutive day, and in the process, the pair has moved to test the swing low from May 13 (and low for the year) at 1.21543.
The low price for the day has reach 1.2160 so far.
The low price from May 13, 2022 was the lowest level since May 18, 2020 when the price bottomed at 1.20705.
A move below 1.21543 would open up the door for a move toward that May 2020 low.
Key level for the GBPUSD on the daily chart.
Drilling to the hourly chart, the price action today initially found Asian session support near 1.2260. That level was the swing low going back to May 9. The subsequent bounce saw the price reenter a swing area between 1.2288 to 1.2302. The high price on a corrective move stalled right at the 1.2300 natural resistance level (the high reached 1.22998) and just below the high of the swing area (see red circles in the chart below). The price has been trending to the downside since that successful test.
What now?
Seller are in full control.
If the buyers are to take back more control getting above the 38.2% retracement of that last leg to the downside at 1.22137 and then the 50% of that last move at 1.22302 would be upside targets to get to and through and give dip buyers against the lows some comfort. Absent that, and the buyers are simply not winning. The sellers are still in firm control.
