4 day run higher corrects to the 50% retracement.
The GBPUSD was on a 4 day winning streak. The move took the price above a topside channel trend line on the hourly chart yesterday and raced up to test the high from January 2 (high for the year) at 1.32655. The high reached 1.32665.
The pair moved lower and initially stalled near the 38.2% retracement of the week's trading range. The price has subsequently broken below that level, and below a lower channel trendline on the way to the 50% retracement at 1.31699.
Risk now for shorts?
Looking at the daily chart, the 1.3199 to 1.3211 area is home to swing highs going back to early January to March. Stay below keeps the sellers in control. A move above and the waters are muddy - but more bullish.