GBPUSD faces tight trading range in European session

GBPUSD is currently trading in a narrow range as London traders near the end of their session. The pair is moving within a 48-pip range, which is less than its average of 79 pips over the past month. It has struggled to find a clear direction, trading between significant technical levels. On the hourly chart, GBPUSD closed yesterday between the 100-hour moving average at 1.2975 and the 200-hour moving average at 1.2958. The price eventually broke lower, approaching the 61.8% retracement level from high to low, which is at 1.2922. During the early European session, the price touched this level but buyers pushed it back up. Despite this rebound, the recovery lost momentum at the 200-hour moving average. Sellers re-entered the market at this point, limiting any further gains. GBPUSD has since returned to test the 61.8% retracement level again. If the price falls below this level and also drops under last Friday's low of 1.2908, it could signal more losses ahead. In such a case, buyers may take a step back for the time being.