GBPUSD Trades to Daily Lows The GBP/USD is trading to new weekly lows after prices have broken below the critical 1.3000 value of support. While it was expected that US Dollar pairs may breakout tomorrow with the latest FOMC rate decision,
the GBP/USD is already losing ground as traders speculate on the likelihood of a FED rate hike. Technically the GBP/USD is currently in a downtrend with prices declining as much as 498 pips from the monthly high at 1.3445. Trades should continue to monitor short-term price momentum going into tomorrow’s news to determine if this trend is set to continue, or retrace towards points of resistance.
In the 10-minute graph below, the GBP/USD can be seen bouncing from this morning’s low of 1.2947. The Grid Sight Index (GSI) has interpreted this move as a developing short-term uptrend as the pair has continued to rise in the last 30 minutes of trading. After reviewing 48,444,623 pricing points, GSI has indicated that price action has continued to advance by 20 pips or more in 46% of the reported 59 historical matching events. If prices continue to retrace this morning’s move, traders should look for the GBP/USD to move through the first bullish historical distribution at 1.2988. A move through this point would indicate that the GBP/USD is at least temporarily supported, allowing traders to target new values of resistance.
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