With the dust starting to settle from yesterday’s main event we can begin to look around for opportunities in the wake of the Fed’s decision.
One such opportunity is the GBPUSD wedge I mentioned over the weekend. It didn’t take long for sellers to follow through on a close below support.
In that commentary, I pointed out that a move below wedge support would expose the 1.2326 handle. This level has been a key pivot for the GBPUSD since mid-October.
As of this writing, the pair has closed below the support level in question on a 4-hour closing basis. However, the session close (5 pm EST) is still several hours away.
With that said, I don’t see much preventing sellers from doing just that.
From here we can begin watching for selling opportunities on a rotation back to the 1.2510 – 1.2550 area. Key support comes in at 1.2326. This was the October 19th high as well as the low on the 18th and 21st of November.
A close below 1.2326 would expose the series of lows from October at 1.2090.
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