The GBPUSD has moved down for for 5 consecutive days. Over that time period, the price has move down from 1.2599 to a low reached late yesterday at 1.1933. That is a decline of 666 devilish pips.
Looking at the daily chart, at the lows, the price tested a swing high going back to March 23 at 1.1933. There was another swing high on March 26 at 1.19724. The price raced back above those levels and saw a increase buying momentum (see yellow area and red numbered circles in the chart above).
The price has reentered into a another swing area between 1.20729 and 1.2154. The high price has reached 1.2124 so far. The current price is back down trading at 1.2091.
Drilling to the hourly chart below, on the topside the 1.2154 to 1.2173 level were swing lows going back to May 12 to May 13. Yesterday and on Tuesday, the price traded above and below that area with some swing levels within it (see red numbered circles in the chart below). The market was deciding what to do.
Move back above that level today and above the 38.2% retracement 1.21874, would give the dip buyers more confidence.. The falling 100 hour moving average 1.22362 would also need to be broken if the buyers are to take further control.
On the downside today, keep an eye out 1.20729 as close support (swing low from May 15, 2020). Move below that level, and we could see another rotation back down toward the lows with 1.1972 and then the low at 1.19328 as key target levels.