The move above 1.3397 ceiling (and 1.3400) did not go well
The GBPUSD had created a pretty strong ceiling against the 1.3397 level with highs from November 23 and highs near the level on November 25 and 26th.
The run up in the Asian session and into the early European session saw the price extend above that level (the 1.3400 level too) on it's way to 1.34054 high. That took the price to the highest level since September 1.
The break should have led to more buying with the September 1 high at 1.34816 an upside target. However, momentum faded, and the price reversed sharply lower.
The move back lower to the price back into the meat of the up and down trading range seen since November 23. Most of the trading activity has taken place between around 1.3290 and 1.3397.
The price fell back below its 100 hour moving average at 1.33503 and 200 hour moving average 1.33284, but did stall ahead of a swing area between 1.33029 and 1.33116 (see lower yellow area). The price is currently back up retesting the 100 hour moving average at 1.33503.
Admittedly, the price action has not paid much attention to the 100 and 200 hour moving averages over the last few trading days. This is congruent with the up and down non-trending trading that has occurred since November 23. The traders making up "the market" are not so sure of whether the next move is higher or lower. As a result we get price action like we saw today where the I was taken out but only by 8 or so pips followed by a quick reversal lower.
Brexit is certainly a driving influence. Also, the impact from Covid continues to be a fluid situation on the economies in both the US and UK as does hopes for a vaccine in 2021.
