The GBPUSD is trading to a new session low as the clock ticks toward the end of day. in the process, the price is ticking down toward the 38.2% retracement of the move up from the September 26, 2022 low. That retracement level comes in at 1.20763.
After a trend move higher as we saw in the GPBUSD from the September 2022 low, getting and staying below the 38.2% retracement of that move is still a major target to prove that the sellers are taking back more control.
Yes, the price has trended below the 100 day moving average and 200-day moving average in the month of September with little in the way of a meaningful correction over the last 2+ months. However, if the 38.2% retracement does hold support, and the price starts to move back above the swing area between 1.2187 and 1.2227 (see chart below), traders may start to think that the move to the downside seen over the last few months is simply a correction in what is more of a bullish longer-term market trend.
So watch the 1.20763 level. It is a key barometer for both buyers and sellers.
This article was written by Greg Michalowski at www.forexlive.com. Source