GBPUSD falls below a key support as we approach the US session open

We had some hectic trading days following Trump’s tariffs announcement with the US Dollar initially getting sold on aggressive Fed rate cuts bets but eventually the greenback regained ground as the market realised that it’s going to be bad for everyone and risk off flows intensified.

On the daily chart below, we can see that if the selloff extends, the buyers will likely lean on the major trendline with a defined risk below it to position for a rally into new highs. The sellers, on the other hand, will look for a break lower to increase the bearish bets into the 125.50 level next.

On the 4 hour chart below, we can see that the pair is trading at a key support around the 1.2860 level. The sellers will likely continue to pile in around these levels to push into the trendline, while the buyers will look for the price to rise back above the key level to start targeting new highs.

This article was written by Giuseppe Dellamotta at www.forexlive.com.