The pair tumbles below higher swing area at 1.2265-74
The GBPUSD price action was influenced by Brexit concerns today (see post here). That news helped to push the pair lower and through swing support defined in the 1.22656-745 area (see yellow area). The tumble took the price to a session low of 1.22067. That was just above the October low of 1.22031. We currently trade at 1.2210. A break below the 1.2203 (well the 1.2200 level) should open the door for further downside (new risk for the sellers).
Taking a broader look at the daily chart, the pair is also just above the 61.8% of the move up from the September low. That comes in at 1.21959. So although falliing below the 1.2200 level is more bearish, there is an additional retracement target that may give traders some pause. Be aware.
As for buyers against support, they are trying to make a play. The weaker PPI gave the pair a little run higher with the price moving to 1.2231 soon after the report, but that run higher was short lived. We are back toward the lows.
