Falling GBPUSD below 1.27 could lead the pair straight to 1.20

FX:GBPUSD   British Pound / U.S. Dollar
In the previous three months, we saw lower rebounds for GBPUSD: 1.3300, 1.3250, 1.3170.
By now, it has returned to major support line at 1.27, from where the pair rebounded in August and November. Also, this level was an important watershed in 2017, which increases its importance. THis line

Falling under this support can start the movement down to 1.20, to lows after Brexit.

If the pair can keep above 1.27, we can be seen this as a signal that investors believe in smoothly Brexit that may follows another one rebound above 1.3000. But even in this case we should pay attention, that GBPUSD becomes lower overtime.
Comment: From the technical analysis perspective, in stormy market reaction when GBPUSD fell under an important level of 1.2700 we could see that the pair goes to a new - lower - level.
From August, the pound was supported near this mark, but yesterday's decline below it could open a new chapter by sending a pound in to the 1.20-1.27 area for the months to come.

In this area, the pair traded during a period of strong concern for Britain's fate from October 2016 to April 2017.
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