There are a series of levels in play as the market decides if it wants to make a break for it
If you look at the 4-hour chart of the GBPUSD, there is a lower trend line at 1.28173. Below that is a swing floor area at 1.2802-056. Finallly below that is the swing low (from an extreme) at 1.27873.
The price has moved below the first two targets and just fell to 1.27923 low, but the price has snapped back higher. The high snap back price has moved 1.28138. That takes it back above the most recent floor area, but below the broken trend line. The low of course, fell short of the October 24 low.
So, there is still a battle going on, with the sellers making a play to get out of the 3+week trading range.
Stay below the 1.2817 trend line is the risk for sellers now. However, understand that the pair needs to get and stay back below that 1.2802-056 level soon too. If it can keep the lid and push through, the 1.27873 is in jeopardy with a break having traders looking for more downside momentum.
Key moment here for both the sellers and the buyers. Who has the greatest strength at this key area?