During the Tuesday Asian session and into the European session, the $GBPAUD fell to new lows at 1.72. This weakness is attributed to, first, the RBA staying pat on monetary policy when just last week the market was dealing with rumors of an interest rate cut from the RBA. A no-change announcement sparked a relief rally in the AUD, sending the $GBPAUD lower.
Into the European session, the downside only accelerated as UK manufacturing missed market expectations. This helped price reach the 61.8% Fibonacci level at 1.72. However, this price was met by bids and buyers took the weakness as the opportunity to pile into the long term bullish trend that is still very much intact despite the price weakness.
Now with price up over 80 pips already from those 1.72 lows, it looks too late to get into this long trade. Never chase a trade but learn, instead, from the missed opportunity. The moral of the story: when price starts to fall off its highs, draw the Fibonacci levels and wait for price to react accordingly. The trader can then act accordingly.