The GBPUSD moved lower after the stronger-than-expected US jobs report, but after reaching a down side trendline on the hourly chart, buyers entered and pushed the price back to the upside. The pair remains below a swing area between 1.2558 1.2568. He would have to stay below that level to keep the sellers in play.
Traders will be watching the 38.2% retracement of the move up from the November 10 low as a intraday barometer. That level comes in at 1.2524. After a trend move higher like seen in November, a corrective move to the downside needs to get and staying the 38.2% retracement to show that the sellers mean business. Absent that and the correction is just a plain-vanilla variety.
On the downside there are other key technical levels looming including the 200-day moving average at 1.2484, and the 100-day moving average at 1.2457.
This article was written by Greg Michalowski at www.forexlive.com. Source