Retests the lows for the day after sharp move higher fails
The GBPUSD has completed a "day's lap" (or close enough). The lap took the price from a low of 1.34114 to a high of 1.34905 and back down to the low again. The price just reached 1.3412.
The London fixing at 1600 GMT may be an influence. There was also some buying in the EURGBP.
From an earlier post, the 1.3456-667 area was earmarked as the level to stay below today, for the bears to stay in charge (see yellow area in the hourly chart above). The highs over the last few hours has reached 1.3454 and 1.3451 respectively. The seller kept control. The price moved lower.
What now?
The fixing is now over. Is the move for real? Are the sellers happy to sell?
It is always hard to say especially when the price stalls at a prior low (and a lap completed). There is a reason to buy or take some off the table here.
However, sellers from above (and against the key area of the day) have some room between entry and the current price too. If the low for the day is broken, a retest of the low from yesterday will be the next key target. If that is broken, the 1.3298 (call it 1.3300) will be the area to eye for the sellers (see daily chart below).
