Unfortunately, for the GBPUSD, it looks like unmitigated downside potential due to the recent strength of the DXY.
On Wednesday, the GBPUSD reversed strongly from the resistance area of 1.2050 and saw a significant move to the downside. Breaking past 1.19 to reach a low of 1.18, the GBPUSD currently trades and consolidates along the 1.1842 price level (last tested in January 2023).
While a brief retracement to the upside could be likely, the GBPUSD is more likely to continue with the downtrend to test the next key support level of 1.1766. However, watch out for a potential hurdle at the round number level of 1.18.
On Wednesday, the GBPUSD reversed strongly from the resistance area of 1.2050 and saw a significant move to the downside. Breaking past 1.19 to reach a low of 1.18, the GBPUSD currently trades and consolidates along the 1.1842 price level (last tested in January 2023).
While a brief retracement to the upside could be likely, the GBPUSD is more likely to continue with the downtrend to test the next key support level of 1.1766. However, watch out for a potential hurdle at the round number level of 1.18.
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