The price of the GBPUSD has fallen today below the November low of 1.34236 and the September low 1.3411. That takes pair to the lowest level since December 23, 2020. The low just reached 1.34056.

The move below the old lows opens the door for further downside momentum. A lower trendline on the daily chart cuts across at 1.3324. Other swing levels from November and December 2020 come in at 1.33117. The 38.2% retracement of the move up from the March 2020 low to the June 2021 high comes in at 1.31640. All are in play on a new leg lower in the move down.

What might ruin the bearish break?. Getting above the earlier November low at 1.34236 would disappoint sellers on the break. Also watch 1.34498. That was the low on Monday.

When a new multi-month low is made, traders expect more.  Now there may be some wiggle room- especially since the pair has been on a straight line down from the US morning high at 1.35384 (135 pips). However, you want the more recent lows to hold resistance.  So watch the 1.3450 level as a risk/bias defining level. Stay below keeps sellers in control. Move above and stay above, and disappointment on the failed break may start to creep into the market sentiment.