The 1.2200 level and the October 2019 low at 1.21936 are eyed.
The GBPUSD reveresed earlier Asian gains and in the process the price fell below the lows from Friday.
The break to new lows approached the October swing lows. The cluster of swing lows from October 2019 ranges from 1.21945 to 1.2203. The low today reached 1.22083. We currently trade at 1.2252 and volatile trading. Buyers seem to leaned against that area. The price has extended higher.
Drilling down to the hourly chart below, a topside trend line currently comes in at 1.23117. Above that level ,and traders will start to look toward the 38.2% retracement of the last leg to the downside (from Friday's high). That level comes in at 1.23669. That is also near some swing high levels from the London/European morning session.
Overall, the rebound off of the October 2019 lows is encouraging for dip buyers. However, it will still take moves above the trend line at 1.2311 and the 38.2% retracement 1.236692 really give the dip buyers some hope for further upside potential.
Nevertheless, the hope remains that the worst is behind given the bounce.
