January 3, OctaFX – The British pound is now under heavy selling pressure against the US dollar, following a flash crash in the foreign exchange market which saw the pair hitting 1.2424.
GBPUSD Technical Outlook
The GBPUSD pair has made a recovery above the 1.2500 level, although short-term sellers still retain control of price action. A continuation to the downside is expected if sellers can hold price below the pivotal 1.2528 level.
- If the GBPUSD pair trades below the 1.2528 level, sellers are likely to test the 1.2470 and 1.2424 support levels.
- If buyers can hold price above the 1.2528 level, a correction towards the 1.2600 and 1.2620 levels may occur.
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