The GBPUSD traded to new lows going back to November 2023 on Monday, but fell short of downside targets on the daily chart at 1.2039 to 1.20686. The low reached just below the 1.2100 level at 1.20989.
The price bounced but quite frankly the price action was sloppy and misbehaving to the technicals for the rest of the trading week. Like other pairs, the high was reached on Wednesday on the USD selling after the US CPI. However for the GBPUSD, that high moved briefly above the 38.2% of the January trading range at 1.22808, but was quickly reversed and not sniffed again for the rest of the week.
Buyers did not prove anything wtih their efforts this week.
What would turn that view around in the new trading week?
The first win would be a move above the 100-hour MA at 1.22088, and then the 200 hour MA at 1.22629. Move above those levels at the 38.2% of the move January move at 1.22808. Those are the minimums. Above that and traders will look toward 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.
Absent 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 area on the daily chart at 1.2039 to 1.20686 would be eyed.