If you saw the latest forex forecast video, you know that GBPUSD was battling a key trend line support.
Not only was it battling this level, but buyers were struggling to keep their heads above 1.3260 support.
As such, I was anticipating a pullback from GBPUSD.
Monday’s session closed below that trend line, which confirmed the breakdown and exposed a support level I mentioned on Monday.
That level is 1.2980.
As you can see from the chart below, GBPUSD reached that level on Tuesday.
Below 1.2980 we have 1.2800 or perhaps just above it.
However, if the March trend line has any significance, we could see GBPUSD bounce before it reaches the 1.2800 region.
That said, this is not something I would buy.
Even if GBPUSD bounces from trend line support, the velocity is this current move is too great for me to think about buying the pound.
If you got short on that breakdown I mentioned on Monday, well done.
If not, this might be one to watch for now until another favorable setup develops.