FX.co ★ GBP/USD: downside movement activated

GBP/USD Crashed As Expected!

The GBP/USD pair registered a strong drop and now is trading at 1.2501 at the time of writing. You knew from yesterday's analysis that the price action signaled that the uptrend ended and that the sellers could force it to drop.

As you can see on the H1 chart, the rate registered a valid breakdown below the 1.2585 former low which represented a downside obstacle.

GBP/USD Trading Conclusion!

Dropping and stabilizing below 1.2585 was seen as a selling opportunity. The next downside target and obstacle is represented by 1.2434. A larger drop could be activated if the rate drops below this level.