Pair moves back above the old 2021 low at 1.34498 level

The GBPUSD fell sharply yesterday and in the process was able to crack below the 2021 low price from January 11 at 1.34498. The low price reached 1.3411. Today the low could not extend to the downside (the low reach 1.34149). As a result, the price has seen a choppy move back to the upside.

The weaker than expected initial jobless claims has helped to continue that corrective move to the upside. Looking at the hourly chart below, the pair is approaching the 50% midpoint of the move down from yesterday's high to low. That level comes in at 1.34825. That would be the minimum retracement (it's only of the move down yesterday) that would give the buyers some comfort and hope for more upside corrective action.

On the daily chart, the January 18 low came in at 1.35188. That would be another key target if the buyers are to build on a bottom.

On the downside, a move back below the January 11 low at 1.34498 would discourage any hopes of a upside bounce (and could accelerate the downside momentum as well).

GBPUSD on the daily chart