Technical Analysis

GBPUSD trades to fresh lows. Looks toward 1.2600-10 area

GBPUSD takes out levels on the back of the stronger US retail sales.

The GBPUSD moved below the 50% retracement of the move up from the May 31 low earlier in the session. Recall from yesterday, that level stalled the fall. Today that level was broken (at 1.26603), putting sellers even more in control, and increasing the anxiety for the bulls/buyers. 

The better US retail sales data in the US has now pushe the price below the 61.8% and a lower trend line at 1.2624.  The swing low from June 3 at 1.2510 and the natural support at 1.2600 area now downside targets.   Below that, the 1.2580  and 1.2558 will be targeted.

Close risk is now a move above the 1.2636 level (61.8%).

ON the political front, Boris Johnson is leading the way for the PM position.  He said today that he does not aim for a no-deal Brexit.  He also said that he does not want to leave with a WTO solution and it is perfectly realistic to get a deal by October 31.  

There still remains  a lot of balls in the air in the UK. Figuring out their political situation is step one. Then the hard stuff is ahead with the Brexit puzzle to figure out with the EU. Stronger USD is not helping.  

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