The GBPUSD moved sharply lower yesterday after better UK CPI data. The run to the downside stalled against the 50% midpoint of the move up from the end of June low to the high reached the last week. That level came in at 1.28658.
The subsequent corrective move higher saw the price move back above the broken 38.2% retracement at 1.29309. However, when that level was re-broken today (at 1.29309), sellers leaned against it and pushed the price lower in the European session.
The move lower in the GBPUSD is now taking the price move below the 50% retracement level. Sellers are making a statement. Can they keep the momentum going?
The next target for the pair comes against the swing area between 1.28349 and 1.28486. Move below that level, and the 61.8% retracement of the same move up from the end of June low comes in at the nice round number of 1.2800.
This article was written by Greg Michalowski at www.forexlive.com. Source