GBPUSD stretches toward 61.8% retracement

The USD is moving higher.

• The EURUSD is against the 2024 low at 1.0600.
• The USDJPY is trading to new highs and has entered into a swing area between 154.54 in 155.09. The high price last week reached 154.704 and is the next upside target.

For the GBPUSD it is trading to new lows and moving away from it’s broken 200 day moving average at 1.28178 broken earlier today. A new low is being made as I type at 1.27347.

That low is just above the 61.8% retracement of the move up from the April 2024 low at 1.27322. Break below that retracement level and traders will be looking toward a swing area between 1.2665 and 1.2685 as seller add to their run to the downside.

If buyers lean against the retracement level and move higher, getting back above 1.2777 is needed for the buyers to have some comfort for more upside probing. Absent that and the sellers are more in control.

Ultimately, a move back above the 200-day moving average at 1.28178 is needed to scare the sellers into buying.

Sellers are pushing, but the 61.8% retracement is now in the way and being tested. Will profit takers enter here against the risk defining level or will the sellers make another push to the downside?

This article was written by Greg Michalowski at www.forexlive.com.