Selling was strong but support stalls the fall.
Yesterday, I outlined the case why the 1.3456-66 was a level to stay below (see, "Can the GBPUSD stay below "this level"? What level am I focused on in the pair today?"). That level did hold and the price started a new leg lower.
The fall in the NY session yesterday, stalled at the Asian session low (see post here) and there was a modest bounce.
Today, the selling continued the run lower - breaking below the lows from yesterday at 1.3411 first, and then the low for the week at 1.33888.
That move was helped by lower CPI in the UK. It certainly gave the pair a push to even lower levels.
The technical target?
The 1.3300 area (see post from yesterday outlining the target). That was home to a number of swing low from December 2017 (see daily chart below). The low today reached 1.3304. The price is rebounding off the target support.
What next?
Looking at the hourly chart, the price has corrected toward the 38.2% of the day's trading range at 1.33565. The 50% is at 1.33726. That area should attract corrective sellers and would be a risk level for sellers/shorts now. A move above and the technical waters are more muddy with the low from Monday at 1.3388 the next corrective target.
Drilling to the 5 minute chart below, the 38.2% retracement at 1.3357 is joined by the 100 bar MA (blue line). The dual levels increase the levels importance for trend traders looking for the trend lower to continue. Be aware. Stay below on this correction, and the sellers still feel more in control. The buyers/longs? They would still feel uneasy.
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