Price moves below the August 20 low at 1.20633
As the BBC reports that lot discussions are going on in Downing Street about asking UK Parliament to approve a snap election, the GBPUSD is continuing the downward trend move lower.
The GBPUSD pair is cracking below the 1.20633 level in the process. That level was the low going back to August 20 (see hourly chart above). The next target on the downside comes in against the swing lows from August 13/14 at the 1.2040 – 1.20443 area (see yellow swing area and green numbered circles on the hourly chart above). A move below that will look toward the August 12 low (low for August and lowest level since January 2017) at 1.20139.
Looking at the daily chart below, the price fell back below an old downward sloping trendline at the 1.2110 area. That helped to weaken the pair as well. Last week, the high for the week stalled ahead of the 38.2% of the move down from the June high. That made the correction, just a plain vanilla correction technically. Sellers leaned against the level, and the price started to move back lower. Bearish.
Drilling down to the 5-minute chart below, an intraday floor is developed at the 1.2065 level. When that was broken on the move to new lows, the momentum lower increased. That level is very close risk for shorts. Another risk level would be the 1.2075 level which is the 50% of the last leg lower on the trend move lower today (See yellow area in the chart below).