GBPUSD has shifted gears after months of steady gains, with the October 3rd close below 1.3200 marking a significant turning point.
In today’s video, we’ll break down key levels to watch and why I’m now targeting 1.2900 as sellers take control.
Since April, GBPUSD has been trending higher, forming higher highs and lows.
But as I pointed out in recent videos, that changed with the October 3rd close below the 1.3200 region.
It marked the first weekly close below a previous swing high since the rally started.
That’s also when the DXY reclaimed the 101.90 range highs, which later extended to the 102.60 region.
That’s when I turned more aggressively bullish on the USD, targeting levels like 103.30 and 104.00.
Wednesday’s DXY close above 103.20/30 now flips that area to new support, opening up the 104.00 to 104.50 zone.
As for GBPUSD, Wednesday’s session closed below 1.3050, which suggests the recent lows between 1.3030 and 1.3050 are likely to attract sellers.
We can also see an imbalance from the August 16th candle.
Imbalances like these often get “filled,” serving as magnets.
We’ll see if this time is different, but I’m betting it isn’t.
My target for GBPUSD remains 1.2900 while it trades below 1.3050 on a daily closing basis.
