Price falls below March lows, but bounces off support from Jan/Feb.
The GBPUSD cracked below a swing low area ahead at 1.3801 to 1.38083 in the London morning session (see green numbered circles and the low shaded area) and ran down to a low price at 1.3751. The pair also broke below the swing low from March 5 near 1.3778 on the way lower. Since bottoming, the price has rebounded back up to retest the low of the swing area at 1.38012. So for that area has found willing sellers. That is good for the sellers. The sellers are making a play, they need to keep control.
If the price moves back above 1.3801 to 1.3808, I would expect the sellers to be disappointed and look to cover some shorts.
Taking a broader look at the 4-hour chart, the low today stalled in a swing area between 1.3745 and 1.37582 (see red numbered circles and yellow area in the chart below). So there was a good reason for buyers to step in at the area.
The two charts are showing the battle that is taking place. While breaking below the 1.3801-1.38083 area was a step in the bearish direction, the support buyers near the swing area going back to January/February is also justified technically. The good news is the levels both did their thing and give us traders the roadmap.
If the resistance canal hold watch the 1.3778 area for intraday clues. Move back below (and stay below), and the sellers hold the strongest hand/control.