The 1.22 level is vital support as its the last area of defense before the all-time lows reached in the summer of 2019. Therefore, if this support is taken out, larger stop-losses could be hit below it, and this could lead to further decline.
Bears will be targeting the mentioned all-time lows, which are near the psychological zone of 1.20. If this level is broken to the downside, well, nobody can tell what happens after as there are no supports on the chart, but the downtrend will most likely persist. As you can see from the chart, the daily RSI is not yet at extreme levels. Thus the pound ain't that much oversold. Alternatively, the pair needs to climb above yesterday's highs of 1.24 to stabilize, with the next resistance at around 1.25.
As long as the pair remains below 1.24, the short-term trend seems bearish.
