GBP/USD has broken the intraday levels it is now time to look at the higher timeframes for support

• GBP/USD is still feeling the aftermath of the Bank of England yesterday and fell 0.54% on Friday.
• The price has made the lower high lower low pattern and now traders are looking for lower levels.

GBP/USD daily chart

The pattern on the daily chart has overcome the Dow Theory rules of a lower high lower low technical traders are looking for lower levels. The blue trendline has also been broken to the downside adding to the theory the price could fall even further.

Where could the bulls now be looking for support? Just above 1.22 there is a black support level that could be the next target. Beyond that, 1.2075 is another levels where the bulls have stepped in. 

All the technical signals are pointing to lower levels at the moment. The price is under the 55 and 200 moving averages. The MACD histogram has turned red and the Relative Strength Index has pushed below 50 too. The last thing we need is the break of the signal lines below the mid-point on the MACD.  

Obviously there will be some pullbacks and some price waves but the consensus is very much bearish for now. 

GBP/USD weeky chart

The weekly chart shows the next major support is at the psychological 1.20 level. Historically any move near the 1.20 level brings in the bulls. 

Additional levels