It wasn't long ago we were talking about the 1.2200 level.
The GBPUSD bid ticked to 1.2098 on the last dip lower. And like the test below the 1.2200 level not long ago, we are seeing a tick higher.
Where is resistance now?
Looking at the 15 minute chart, the last trend lower has ttaken the price down from 1.22259 to the low of 1.20980. The 38.2 to 50% retracement comes in at 1.21469 to 1.21619. That is topside resistance now. Putting it another way "if the buyers cannot take the price back above that area, the buyers are not taking back ANY control. The sellers remain in full control."
Now....
The GBPUSD has moved 273 pips so far. The pair has traded with a 1.2300, 1.2200, 1.21000 and 1.2000 handle now. When is enough....enough? The farther it goes, the harder it can get to go lower. Traders who are short take profit. Dip buyers take a shot. Having said that, in a market that just gapped 1000 pips, and in a market where finding support is quite frankly hard to do (we don't have a lot of history down here), those things could also trigger quicker moves further to the downside too. There is simply not a lot of risk defining levels. SO be careful, but understand the sellers are feeling just fine. It is the longs who are feeling quite sick (and are likely scared).