Sellers pushed GBP/USD below last week’s low at 1.3299 and down to 1.3283, the pair’s weakest level since July 2. The next downside target sits at 1.3261, with the July 1 low near 1.3218 in focus if that gives way. On the topside, 1.3305 is now the first close-risk level for sellers.
GBP/USD sellers have seized control, pushing the pair below last week’s low at 1.3299 and down to its weakest level since July 2. That level mattered technically because it aligned with the 61.8% retracement of the rally from the June 23 low to the July high.
Buyers initially tried to defend that support, sparking a modest rebound toward 1.3313, but the recovery quickly stalled. Once the price broke below 1.3299, downside momentum accelerated and the pair set a session low of 1.3283.
The next downside target comes in at 1.3261. A break below that level would shift the focus toward the July 1 low near 1.3218, opening the door for a deeper retracement of July’s advance.
GBP/USD peaked on July 15, and with four trading days remaining in the month, sellers now have an opportunity to erase the entire month’s rally. Whether they can complete a 100% retracement of the move higher from the July low will be the key question into month-end.
On the topside, 1.3305 — Friday’s low and the former support level — now becomes the first close-risk level for sellers. As long as the price remains below that level, the technical bias stays firmly to the downside. A move back above 1.3305 would signal that the latest break lower has failed and could trigger short covering, leading to a corrective rebound.
Source: InvestingLive
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