TECHNICAL UPDATE: GBPUSD tests retracement level of the move up from the October 2023 low

<p>The GBPUSD has moved to a new session low near 1.2526. That is just above the 38.2% retracement of the moveout from the October 2023 low to the December 2023 high. That retracement level comes in at 1.25245. </p><p>Earlier today, the price finally moved outside of the 1.2600 – 1.2800 up-and-down trading range. The price also fell below its 200 day moving average of 1.25609. That level is now a risk-defining level for both buyers and sellers. Staying below is more bearish. </p><p>After a trend move – in this case higher from the October low – getting below the 38.2% retracement is a minimum to show that sellers are taking more control. Absent that and the move is just a corrective move. </p><p>Nevertheless breaking below the 200-day moving out for the first time since November 20 is significant. If the price can stay below that level I would give the sellers the benefit of the doubt (especially after the long period of up-and-down price action from mid-December until today).</p>

This article was written by Greg Michalowski at www.forexlive.com.