The GBPUSD is trading to a new session low in early North American trading, with sellers pushing the price below the 38.2% retracement of the decline from the August high to the October low at 1.3342.Earlier today, buyers leaned against that retracement level and managed a modest bounce to 1.3356. However, that recovery ran out of steam, and the subsequent break below 1.3342 has shifted the near-term focus toward the next downside hurdle: the rising 200-hour moving average at 1.33327.With the price trading near 1.3334, that moving average is being tested. The battle between buyers and sellers is at an important level.Sellers started with a ceiling aboveThe sellers gained confidence earlier in the Asian-Pacific session when the high stalled against the 100-day moving average at 1.33874.That failure gave traders a technical reason to sell, with risk defined against the moving average. Buyers had their shot to push through a longer-term technical ceiling. They could not get the job done, and the price rotated lower.Now, after breaking below the retracement at 1.3342, sellers are trying to build on that rejection by taking out an important hourly support level.Why the 200-hour moving average mattersA move below the 200-hour moving average would be the first break beneath that indicator since October 15. That makes this more than just another price level on the chart.The moving average has helped define the bullish side of the recent corrective move. Staying above it keeps some of that structure intact. Breaking below it—and staying below—would suggest that sellers are taking greater control.The distinction is important. A brief move below a moving average does not automatically confirm a sustained break. Traders want to see whether the price can extend lower and whether a subsequent bounce finds sellers near the broken level.If the price breaks below but quickly snaps back above, the sellers may have had their shot and missed.However, a break with follow-through would open the door toward the next swing area between 1.3298 and 1.33103. On the way down, traders would encounter the upper edge at 1.33103 first, followed by 1.3298.Buyers also have a reason to get involvedDespite today’s selling, the 200-hour moving average remains a potential support level for dip buyers.Why buy when the price is moving lower? Because an identifiable technical level gives traders a place to define and limit risk.A buyer leaning against the moving average is looking for support to hold and the price to rotate higher. If the price instead breaks below with momentum and remains below, the reason for that trade weakens. The level provides a reference for deciding when the idea is no longer working.That does not guarantee a bounce or an exact exit price. It gives the trade a clear technical framework.For buyers to show that they are doing more than temporarily slowing the decline, they would need to reclaim 1.3342. That would put the price back above the broken 38.2% retracement and suggest that the latest downside break is losing traction.The next upside steps would be:1.3355–1.3356: The earlier corrective high.1.33807: The 100-hour moving average.1.33874: The 100-day moving average that capped the Asian-Pacific session high.Each level reclaimed would improve the buyers’ position. Until then, a bounce remains a recovery within today’s move lower.Sellers are making a play. Can they finish it?For now, the rejection at the 100-day moving average and the break below 1.3342 give sellers the near-term advantage.But they still need to get through the 200-hour moving average at 1.33327.Get below and stay below, and the bearish case strengthens, with 1.33103 and 1.3298 the next downside targets. Hold support and move back above 1.3342, and sellers risk losing some of today’s momentum.The sellers are making a play. The next test is whether they can turn that pressure into a sustained break. This article was written by Greg Michalowski at investinglive.com.