As London traders prepare to exit, GBPUSD remains in a tight 48-pip trading range, which is just 61% of its average daily range (79 pips) over the last month. The pair has struggled to establish a clear directional move, with price action constrained between key technical levels.

On the hourly chart, GBPUSD closed yesterday between the 100-hour moving average (1.2975) and the 200-hour moving average (1.2958). The eventual breakout moved to the downside, sending the price toward the 61.8% retracement level of the September 2024 high to the January 2025 low, located at 1.2922. The early European session low tested this retracement, but buyers held the level, leading to a rebound. However, the recovery stalled at the 200-hour MA, where sellers leaned in, preventing further upside.

Since then, the pair has rotated back to the 61.8% retracement at 1.2922. A break below this level, followed by a move under last Friday’s low of 1.2908, would give sellers added confidence and signal further downside potential, while buyers would likely step aside in the short term.