GBPUSD just slid to a new monthly low, and also traded below the December 2019 low of 1.2479, and the June 2019 low of 1.2510. At the time of writing the price was at 1.2466.
The break to the December and June low is important as they were the last two major levels that keep the price supported. The next major level and potential support level is the April 2017 low of 1.2361. The slide follows the idea that the UK is heading for a hard Brexit.
Pattern wise, GBPUSD is breaking a double bottom, alternately, and my preferred interpretation is that we are seeing a continuation of a failed head and shoulders pattern that triggered already in May 17 with a target of 1.1947. As for today’s slide, the bulls will be under pressure as long as the prices trades below yesterday’s high of 1.2540.Don’t miss a beat! Follow us on Twitter.