The GBP/USD has declined in trading today, breaking below the 61.8% retracement level of the move up from the April 2024 low, which sits at 1.2732. Yesterday, the price briefly dipped below this key retracement level before rebounding back upward. However, today’s session has seen renewed selling pressure as the pair failed to hold above this level in the U.S. trading session.
In late trading yesterday and early trading today, buyers attempted to defend the retracement level, but ultimately the price fell further, reaching a low near the top of a critical swing area between 1.2656 and 1.2686. This level acted as support, temporarily halting the decline and allowing the price to rise back to around 1.2716. Currently, the price sits between the 61.8% retracement level at 1.2732 and the upper bound of the swing area at 1.2686, signaling an ongoing tug-of-war between buyers and sellers.
Looking ahead, a decisive move above the 61.8% retracement at 1.2732 could disappoint sellers and pave the way for further upside targets. Key levels include today’s high at 1.2768, followed by the August 16 low of 1.2798, and ultimately the 200-day moving average at 1.2818. Conversely, if the pair continues to trade below the 61.8% retracement level, traders may target the swing area support between 1.2656 and 1.2686 as the next focus for sellers
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GBP/USD Summary
The GBP/USD broke below the 61.8% retracement level (1.2732) today, despite yesterday’s rebound.
Key Levels:
Resistance:
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1.2732 (61.8% retracement)
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1.2768 (today’s high)
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1.2798 (Aug 16 low)
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1.2818 (200-day MA)
Support:
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1.2656-1.2686 (swing area)
Outlook:
Buyers and sellers are in a tug-of-war between 1.2686 and 1.2732. A break above 1.2732 could lead to upside momentum, while continued trading below 1.2732 may target the 1.2656-1.2686 support.
This article was written by Greg Michalowski at www.forexlive.com.
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