Low from January 11 targeted at 1.34498
The GBPUSD fell sharply yesterday and the GBP was the weakest of the major currencies. The fall took the price down to test the January 18 swing low at 1.35188. Today the selling has continued – albeit at a more modest pace – pair moving closer to the January 11 swing low (and lowest level for the year) at 1.34498. The low price today has just reached 1.3454 (within 5 pips of the low for the year).
Recall, that back on September 14, the high for the month of September stalled right near it's 100 day moving average. Staying below that level was a big clue for the sellers. The price has been stepping lower since that peak - a move of about 450 pips lower).
Drilling to the hourly chart, the price this week tried to extend above its 200 hour moving average both on Monday and Tuesday only to fail fairly quickly on those breaks. Yesterday after the price moved back below its 100 hour moving average (blue line currently at 1.36541), the selling intensified. The low price stalled against the January 18 low and had a modest bounce into the Asian session today before resuming the momentum to the downside.
The the pair is now testing the 2021 low. I would expect risk focused buyers against the level with stops on a break below. Risk can be defined and limited against the level. That is enough of a reason for some traders to put a toe in the water (with limited risk).