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The GBPUSD has pushed back below its 200 hour moving average 1.25765.
Earlier today, the price found support buyers against that level (the moving average also stalled the fall during yesterday’s trade). However, toward the end of the London morning session the price fell below the moving average only to bounce back to the upside.
The most recent hourly bar, however, has seen the price move back below the level with more momentum. That has helped to push the pair down to a new session low of 1.2533.
In the short-term, traders looking for more downside in the GBPUSD can now use the 200 hour moving average as resistance. Stay below keeps the bears more in control. Move back above and the break lower fails, and sellers give up. Look for sellers on a rebound back higher.
On the downside, there is a swing area between 1.2500 and 1.2524. Between that level sits the 38.2% retracement of the move up from the May 13 low. That level comes in at 1.24705. A move below the 38.2% retracement is required if the sellers are to be serious about their move to the downside. Absent that, and the correction is a plain-vanilla variety. The sellers would not be taking back control.