As London traders look for exits, GBPUSD has returned to the downside. The price is currently trading at 1.2405. The day’s low was 1.2388, reached shortly after the Israeli attack on Iran. This is also the lowest of the trading week.
GBPUSD moves away from the 50% midpoint
The subsequent rebound from this low brought the GBPUSD price back towards its midpoint of 50% of the pair’s rise from the October 2023 low at 1.24646. Today’s high price reached 1.2467 just above this mid-level before moving lower again over the last two hours of trading. Finding willing sellers close to 50% of the midpoint gives sellers more control.
GBPUSD price has also moved back below a former swing zone between 1.24278 and 1.24497. This also increases the bearish bias.
After that ?
Break below today’s low at 1.2388 and traders will look to the 61.8% retracement of the same upward move from the October 2023 low. That level sits at 1.23635. Move below this level and sellers can probe even lower
While the 50% midpoint maintains resistance today, reaching and staying above this level is now necessary to disappoint the sellers/bears.
Sellers control GBPUSD.
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