The GBPUSD moved higher today, but at session highs, the pair tested but could not get above the 38.2% retracement of the move down from the July high to the October low. That level comes in at 1.2458. The high price today reached 1.2455.
The subsequent move to the downside took the price back below the 200-day moving average at 1.2441, and the low of a swing area down to 1.24278. The current price trades at 1.2417.
The inability to extend above the 38.2% retracement is a problem for the buyers. The inability to stay above the 200-day moving average is also a problem for the buyers. The sellers are staking a claim to control by leaning against those levels.
Those laws a price can remain below those levels, the downside remains the technical bias. On the downside, the next target comes in at 1.2368 followed by 1.2336 (swing levels).
This article was written by Greg Michalowski at www.forexlive.com. Source