Trades around the 1.3500 level after closing yesterday near 1.36844
The GBPUSD close yesterday at 1.36844. That took the price back above the falling 100 hour MA. However, sellers came in and pushed the price back below that MA.
After the BOE kept rates unchanged (and did not have a change in the vote), the pair tumbled lower. The pair fell below the 61.8% retracement of the move up from the September 29 low at 1.35725, then started to work at taking out swing lows going back to September 28 through October 12.
Those levels included:
- 1.35677 - lows from Oct 7 and October 12
- 1.3553 - September 29 high
- 1.3543 - October 6 low
- 1.3531 - October 4 low
- 1.3515 to 1.3520 - Sept 28 low September 30 high
The 1.3500 is a natural support target that was also broken
On the downside, other targets on further selling include 1.34228 (the low on October 1), other targets on further selling and the low for the month of September came in at 1.3411. That was the lowest level going back to December 2020.
Going into the new trading day, if there is a corrective move back to the upside, watch the above levels. As long as the price can remain below the 61.8% retracement level at 1.35725, the sellers are probably still feeling empowered/more in control. A move above that level however, and we could see some further covering by the shorts.
