Trades below the October 24 swing low and the June 25 swing high…
The GBPUSD is trading to a new session low to 1.2777 so far. That move is taking the price below the October 24 swing low at 1.2787 and also the June 25 swing high at 1.12783. That 1.2783-87 break tilts the bias just a little more to the downside. Stay below is more bearish.
What is the next key target area on the daily chart?
The 200 day moving average comes in around 1.2700 level. That is also near the 38.2% retracement of the surged higher in October. The combination of those levels represent a key target on the downside should the bears keep control going forward.
Drilling to the hourly chart below, the highs today stalled at the 1.28216 level. The price fall has also moved back below the 1.2802-056 swing area (see lower yellow area and red numbered cirlces). Those are close risk levels for shorts now. The price is breaking awey from those levels today.
More conservative risk levels would come in at the topside trend line (around 1.2840 and moving lower), the falling 100 hour moving average at 1.2855 currently and the 200 hour moving average at 1.2885. If the price trend is more to the downside from the October highs, those levels should not be broken.