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GBPUSD falls to weakest level since July 2 after breaking support
The drop follows a break below 1.3299, with 1.3261 flagged as the next downside target and a close back above 1.3305 described as the first risk level for sellers.
Forexlive reports GBPUSD sellers have taken control, pushing the pair below last week’s low and to its weakest level since July 2. Last week’s low at 1.3299 is described as an important technical level that also aligns with the 61.8% retracement of the rally from the June 23 low to the July high.
Buyers initially tried to defend that support, leading to a modest rebound toward 1.3313, but the recovery stalled. After the price broke below 1.3299, downside momentum increased, taking GBPUSD to a session low of 1.3283.
Forexlive highlights 1.3261 as the next downside target, and says a break below that would shift attention to the July 1 low near 1.3218. With four trading days remaining in July, the outlet notes sellers have an opportunity to erase the entire month’s rally and cites the potential for a full 100% retracement of July’s advance as a key question.
On the topside, 1.3305, described as Friday’s low and a former support level, is identified as the first close risk level for sellers. As long as price remains below 1.3305, the technical bias stays to the downside, while a move back above it could signal a failed break and prompt short covering and a corrective rebound.