GBP/USD has its sights set on 1.2000 again

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GBPUSD D1 01-07

You’d be hard-pressed to find a day where the pound isn’t acting somewhat like a commodity currency these days. On a day where the aussie and kiwi are slumping as the technicals start to crack, the pound is also struggling being dumpstered.

Cable is down 0.9% to 1.2064 now as sellers resume the downside momentum and go in search of a push towards 1.2000 again.

Although the risk mood has improved considerably since the start of the session, there hasn’t been much change to sentiment in the major currencies space. The aussie and kiwi are hammered hard while the dollar and yen are firmer across the board. That is weighing on cable with a drop of over 100 pips today.

As mentioned before in the past two weeks, the defining range for cable is between 1.2000 and 1.2400. It looks like we could see sellers poised to try and test the former and a break below that will exacerbate further weakness for the pair with the March 2020 lows between 1.1410 to 1.1500 next in the firing line.