The GBPUSD moved lower earlier today on the back of modestly lower CPI data. The price ultimately moved below its 200 day moving out of 1.25625. It also fell below a swing area between 1.2558 and 1.25715. Stay below those levels tilts the bias in the favor of the sellers.
Having said that, the low for the day stalled ahead of its 38.2% retracement of the move up from September 2023 low. That level comes in at 1.25245. Recall from last week, the price it did move below that 38.2% retracement level briefly before bouncing back higher. If the sellers are to take more control, getting below that 38.2% retracement, and staying below is required.
Nevertheless, the sellers remaining control below the 200 day moving average with work to do.
See the video above to understand fully the key levels and the explanation for why they are so.
This article was written by Greg Michalowski at www.forexlive.com. Source