The old trading adage that it’s the reaction to news more than the news itself that matters held true in the GBPUSD as it took another leg down after dovish comments from BOE Bailey in an FT article. Price moves (note firmer EURGBP as well) underscore how interest rate cut expectations are driving these markets.
I had to go to the daily chart to find potential support levels on the downside, So far, an AT support at 1.2578 is holding, below it there is one level ahead of the pivotal 1.25.
Hard to chase after a big move but it trades soft below the lower end of intra-day resistance is at 1.2645-75,.
Take a look at the 2 blue AT lines on the daily chart, the failure to test the 2nd line, and how the risk turned to the downside.