[m.youssif]

GBP/USD drops further to as low 1.5935 today so far and the break of 1.5976 support indicates that confirms that rise from 1.5343 is finished at 1.6400 already. Intraday bias remains on the downside for the moment and deeper decline should be seen towards medium term trend line support (now at 1.5788). Sustained break there will indicate that whole rise form 1.4230 has finished too and will turn outlook bearish for 1.5343 support. On the upside, above 1.6020 minor resistance will turn bias neutral and bring recovery. But risk will now remain on the downside as long as 1.6400 resistance holds.

In the bigger picture, price actions from 1.3503 (2009 low) are treated as consolidation to long term down trend from 2007 high of 2.1161. Rise from 1.4230 is treated as the third leg of such consolidation and with 1.5343 support intact, such rise could still continue for 1.7043 resistance. But after all, strong resistance should be seen between 1.7043 and 50% retracement of 2.1161 to 1.3503 at 1.7332 to limit upside. On the downside, break of 1.4230 support will be the first signal of down trend resumption and will turn focus to 1.3503 low for confirmation.

[m.youssif]

GBP/USD drops further to as low 1.5935 today so far and the break of 1.5976 support indicates that confirms that rise from 1.5343 is finished at 1.6400 already. Intraday bias remains on the downside for the moment and deeper decline should be seen towards medium term trend line support (now at 1.5788). Sustained break there will indicate that whole rise form 1.4230 has finished too and will turn outlook bearish for 1.5343 support. On the upside, above 1.6020 minor resistance will turn bias neutral and bring recovery. But risk will now remain on the downside as long as 1.6400 resistance holds.

In the bigger picture, price actions from 1.3503 (2009 low) are treated as consolidation to long term down trend from 2007 high of 2.1161. Rise from 1.4230 is treated as the third leg of such consolidation and with 1.5343 support intact, such rise could still continue for 1.7043 resistance. But after all, strong resistance should be seen between 1.7043 and 50% retracement of 2.1161 to 1.3503 at 1.7332 to limit upside. On the downside, break of 1.4230 support will be the first signal of down trend resumption and will turn focus to 1.3503 low for confirmation.