The GBPUSD has had a down and up trading day. The move to the downside started in the Asian session and moved to a new 2022 (and low going back to the start of the pandemic in 2020) at 1.16476. The move took out the swing low from last week at 1.17153 in the process.
The subsequent rebound to the upside in the European session, saw the price extend back above last week's low, and moved up to test the 38.2% retracement of the move down from Friday's high. That retracement level came in at 1.17441. The high for the day reached just below that level at 1.1743.
The 38.2% is the minimum correction target if the buyers are to take back more control. They failed to extend above that level and the price rotated back lower.
Currently, the pair is trading above and below the low from last week. The current price is at 1.1720 with the low from last week at 1.17153.
Going forward, the 38.2% will be eyed as a close barometer this week. WIth the level holding on the correction, it increases the levels importance. A move above would add to the upside potential above 1.17536 (low from Wednesday), and above that the 50% and the 100 hour MA near 1.1774 and 1.17868.
On the downside, the low today was the lowest level since the pandemic. That low extended down to 1.14033. There were 7 days in March when the price traded below the low for today before bottoming (near 1.1400) and starting the run back to the upside for the pair.
PS a move below 1.1400 would take the GBPUSD to the lowest level since 1985 when the low price reached 1.0545. .
