When we check longer timeframe for GBPUSD we can see that we are in the very important place.
Lets start from this Fibonacci setup placed on chart below, GBPUSD, weekly chart:
So you can clearly see a large ABCD pattern which started in 2014. When correction ended at C, price went down to 127% extension. There was a short stop here. Later we saw a continuation of move down and price stopped at 161.8%. It was in July 2016. Since then price have found a support here. But when we have a closer look then we can see that this support is not holding anymore (or at least for now, this week just started):
If this 161.8% extension won’t hold up then it is possible that we can see a move lower to the 200% Fibonacci extension, which is around 1.19-1.20 level:
Or we can check the last swing. From that swing we can see that possible support is at 138.2% Fibo extension in the same place (1.19-1.20):
Lets have a look at the same swing on daily chart. One thing is important here – price is still above 0 line. This still may act as a support and we may see a bounce from here. But if this level will fail then I think that extensions mentioned above are possible targets for GBPUSD. Daily chart for GBPUSD: