The GBPUSD is down about -1.25% on the day. In the process, the pair has tumbled below its 100 day moving average up near 1.3500 and continued to step lower and lower. The new low for the day just reached 1.33676.
That low has now entered into a swing area defined by swing lows and highs going back to November 12 on the daily chart above (see red numbered circles). That swing area comes between 1.13524 and 1.13757. The low price from 2022 reached on January 27 reach 1.13574.
The swing area is a key target that could give traders some "cause for pause", with stops on a break below. Be aware of that level.
Drilling to the hourly chart, the selling has been one-way from yesterday's high at 1.36197. There has not been much of a corrective move during the entire run lower.
An area to watch on a correction now would be the 1.3430 to 1.3439 area. Move above that level and traders will look to target the 38.2% of the move down from the high yesterday at 1.34619. A move above that area would next target the 50% retracement and swing area between 1.3485 and 1.3493. Absent those breaks and the sellers continue to remain more in control.
As I type, the price is moving to a new lows for the day at 1.3354, and in doing so tests the lower end of the swing area at 1.33524. Key level for both buyers and sellers.