GBPUSD is breaking its range support today, but what levels are next?
Watch today’s video for the key levels and targets to watch, and get the latest on the US Dollar Index (DXY).
I’ve been bearish on GBPUSD since it broke below 1.3250 on the weekly chart.
That was the first failed support level on the weekly time frame since the rally began in April.
It’s also when the DXY was reclaiming the 101.00 and 102.00 key levels, something we discussed at length.
With the DXY breaking its October 2023 trend line on Monday and GBPUSD breaking below its 1.2850 support today, it’s time to discuss lower levels.
The most apparent support on the GBPUSD chart is 1.2600.
That’s the March 2023 trend line, and a level that should attract buyers if tested.
However, it should also serve as a magnet, given where GBPUSD is trading this week.
Although the 1.2850 area flips to new resistance with today’s breakdown, I’d be surprised if GBPUSD retests it considering where the DXY is trading.
Somewhere closer to 1.2800 seems more realistic for a retest before lower levels like 1.2680 and 1.2600.
This idea is contingent on the DXY hold above its October 2023 trend line at 105.40.
