The GBPUSD fell on the much better US jobs report. The price broke below the 50% retracement of the rise from the July 14th low at 1.20261. Price also dipped below another swing target near 1.2006, but was unable to break below natural support at the 1.2000 level.
This support, and the rebound in the US stock market at the start of US trading, compressed some of the shorts and pushed the price back towards yesterday’s low and last Friday’s low near 1.2062. Current prices are trading just around this level. A move above and another swing zone between 1.20866 and 1.20989 would be targeted. The broken 38.% of the July 14 high comes in at 1.2089.
The initial decline in GBPUSD sees hedging flows with a rotation back towards nearby resistance targets. Will the seller step in on the correction and put a lid back on the pair and resume buying in dollars? Levels are fixed.