The GBPUSD initially moved higher after the initial downgrade, but found willing sellers near the 61.8% retracement of the move up from the end of June load to the July high (see video from late yesterday outlining the level). A level came in at 1.2801. The high price moved briefly above that level, but could not sustain momentum, and traders started to use the level as a ceiling.
After testing the ceiling area one last time during the European morning session, buyers turned to sellers. The price started to push lower and lower. More recently, the price has tumbled below a swing area between 1.2738 and 1.2759. Sellers are taking more control.
On the downside, the price is approaching another swing area between 1.26815 and 1.26988 (see above video for more details). That level should be a tough target level to get to and through. Be aware. However if broken, look for additional momentum to the downside as stops are triggered and sellers keep pushing.
Buyers had shot, but sellers leaned against targeted resistance today.
This article was written by Greg Michalowski at www.forexlive.com. Source