The GBPUSD price yesterday fell below a swing area on the daily chart for the pair between 1.3133 and 1.31858.
That area was home to swing highs and lows going back to July 2020 (see red numbered circles). Back in December 2021, that area was retested but found support buyers.
Yesterday's break below the level tilted the bias even more to the downside. The price also fell below the 38.2% retracement of the move up from the March 2020 low. That retracement comes in at 1.3164.
Going forward staying below the swing area/38.2% retracement would keep the sellers in control.
Fast forward to today. The high price on the daily chart today reached 1.31327 – just short of the 1.3133 swing low of the swing area. Sellers leaned. The sellers remain in firm control.
Drilling to the hourly chart below, although the price stayed below the 1.3133 level - and that certainly is key for sellers full control - the price action has been up and down with a low at 1.30808. The range is only 52 pips. The average over the last 22 days is 99 pips.
The current price is at 1.3105. Which is just above the 1.31007 low seen yesterday near the close of trading.
So although the topside resistance is holding, the downside momentum is not all that great. Nevertheless, there is room to roam if the momentum can get going. Conversely, moving above 1.3133 could see some pent up buying momentum from the disappointment of the break and lack of momentum follow thru.