The GBPUSD moved lower after the US CPI data, and in the process broke below its 38.2% retracement of the August trading range at 1.30363. The next target was at the 1.3000 level followed by the rising 200 bar moving average on the 4-hour chart at 1.2971. The price only got to the 1.3000 level bottoming at 1.3001 before buyers came in.
The price has since rotated back higher and is back above the 38.2% retracement at 1.3036. The price is looking to test a swing level including yesterday’s low between 1.3048 and 1.3051. Get above that level and further upside probing can be expected. Conversely, if sellers want to keep the bias more to the downside, staying below this level and moving back below the 38.2% again is needed to give the sellers some relief.