The 200 hour MA is at 1.22028
The GBPUSD tests the week’s low at 1.22395. So far, the price is holding that support. On a break below, the 200 hour moving average at 1.22028 would be eyed.
In the Asian session, the price moved below its 100 hour moving average at 1.23786 currently (see blue line in the chart). The price action into the European session found sellers near that level (putting a lid on the pair). During the European session, sellers took over and push the price below a swing area at 1.2303-298. That area is a close risk level now.
For the week, the pair has been trading up and down in a relatively narrow trading range. That allowed the 100 and 200 hour moving averages time to catch up to the price. The fall below the 100 hour moving average today tilted the bias a little more to the downside. The 200 hour moving average becomes next key technical target that would give sellers more confidence.
Taking a broader look at the daily chart below, the broken 38.2% retracement of the move down from the December 2019 high comes in at 1.22126. That level and the swing lows from October at 1.21945 will be downside support targets. Note that this week, the 50% retracement of that same move could not sustain any of the moves above that level at 1.24611. That was worrisome for the bullish momentum, and contributed to the tilt lower.