The GBPUSD fell sharply after the ISM data, and in the process, extended outside of the “value area” that has confined the pair between 1.2594 and 1.2800. Yes, there were moves below and above that range in February/March, but those breaks were brief. Most of the price action going back to December has been centered between the aforementioned value area.
The break lower has now also taken the price back below its 200-day moving average at 1.25879. Staying below that key moving average level and the lower swing area between 1.2594 – 1.26137 keeps the sellers firmly in control.
On the downside, the low prices from February at 1.2534 and 1.25176 (the lowest price for 2024) are the next targets. Moving below those levels would open the door for further selling potential.
Sellers are making a play in the GBPUSD and are in firm control.
This article was written by Greg Michalowski at www.forexlive.com. Source