The GBPUSD continued its move lower today. The price traded to the lowest level since June 2020 with a new low of 1.2277. That got close to the June 29/June 30 lows between 1.2250 and 1.2256, but early buyers against that next key support target have pushed the price back higher. The current price trades at 1.2337.
Looking at the hourly chart below, the GBPUSDs move back to the upside – off of the new 2022 low – made it all the way to 1.23794, over 100 pips higher from the days lows.
That high – off of the low – tested the Asian session high near 1.2379 and found willing sellers.. There has been a modest rotation down since the jobs report.
Going forward it would take a move in the GBPUSD above the double top today, and then above the swing low from last week at 1.24107 to give buyers more hope.
Recall from yesterday, after breaking below the low from last week, the corrective move back to the upside ticked up to 1.24130 just 2 or 3 pips above the old low at 1.24107 before rotating back to the downside.
The inability to retake that old low level increases the levels of importance going forward, and keeps the sellers firmly in control.
Ultimately, if the price is going higher, the price needs to get back above that level. Absent that and the buyers are simply not winning.