GBP/USD turned really bearish at the end of July. The price broke below the long term support level at 1.25 and tumbled to 1.21, but that level held on for almost two weeks, until it was finally broken at the end of last week. The price fell to 1.20 and reversed back up from there, so a new support area has formed down there.

The price retraced higher this week and buyers have been trying to push above the 1.21 level every day. But, every day they failed to break above the previous support at 1.21 which turned into resistance. Today that level was finally broken and the price surged to 1.2150 as some weak stops were triggered after the break of the resistance level.

This pair has slipped lower again in the last several hours and sellers are now trying to push below 1.21 again. But they failed to do so in the first attempt, which gives you the impression that this level might have turned into support again now. If it breaks, then we head for 1.20 again and the plan will be to sell this pair against this level, if it holds, then we should buy GBP/USD against this level.