The GBPUSD is pounding against the lows from last week at 1.21102. A few hours ago,, the price tested that level and bounced. After reaching a corrective high of 1.21455, the downside has resumed and the price is back down near the 1.21102 level. A move below, should open the door for further selling.
On the downside, the next major target comes against the 38.2% retracement of the move up from the September 26, 2022 low. That level comes in at 1.20763. Typically, the price needs to get below the 38.2% retracement of a trend move higher, to show that the countertrend sellers (in this case ) are serious about the move to the downside.
Yes, since the July high, the price has seen a steady move to the downside, and yes, the price is now below the 100 and 200 day moving averages, but getting below the 38.2% retracement is still a required target to get to and through. Be aware.
This article was written by Greg Michalowski at www.forexlive.com. Source