The GBPUSD traded to low levels dating back to November 2023 on Monday, but failed to break the low targets on the daily chart at 1.2039 to 1.20686. The low was reached just below the 1.2100 level at 1.20989.
The price bounced but in reality the price action was sloppy and unfriendly to the technicians for the rest of the trading week. As with other pairs, the high was reached on Wednesday on the sale of the USD after the US CPI. But for the GBPUSD, that high briefly moved above the 38.2% January trading range at 1.22808, but was quickly reversed and not bounced back for the rest of the week.
Buyers proved nothing with their efforts this week.
What will change that view in the new trading week?
The first gain would be a move above the 100-hour MA at 1.22088, followed by the 200-hour MA at 1.22629. Move above these levels at the 38.2% of January's retracement at 1.22808. These are the lowest levels. Above that and traders will look towards the 50% of the same move lower at 1.2337 and then the 38.2% of the move down from the December high at 1.23689.
Without that, and the sellers are in full control with the low at 1.20989 the next target. A move below that level and the swing range on the daily chart at 1.2039 to 1.20686 would be expected.
