Q Trades in a channel. Moves toward the lower channel trend line
The GBPUSD continues its run to the downside. The low for the day has reached 1.20533. The pair currently trades around 1.2060.
The pair has a trading range of 218 pips today. Most of that price action is to the downside. The price is down around 210 pips currently.
On the downside, the next target comes against day lower channel trendline at around the 1.2037 level. That is a parallel line to a solid topside trend line (see blue numbered circles). Below that the 1.20139 would be the next target. That level corresponds with the swing low from August 2019 (see daily chart below) . Back on September 3, 2019, the price of the pair moved below that level August low to the 2019 low at 1.19578.
The GBP has been under extreme pressure as the market react to the impact of the coronavirus on the economy. PM Johnson urged Britons to avoid "unnecessary travel" in what he describes as "draconian" measures.
Meanwhile the GBPis also getting hit versus the EUR. The EURGBP tested the swing hi from September 2019 at 0.91479 yesterday and backed off. The price action today has been below that level. We currently trade at 0.9117 with a high at 0.91329 and a day low at 0.90647
