[m.youssif]

GBP/USD drops to as low a 1.6354 earlier today before recovering mildly. As noted before for a short term top is at least formed at 1.6744. Intraday bias remains on the downside for 1.6166 support first. Break there will put 1.5935 key near term support back into focus. On the upside, break of 1.6573 resistance is needed to indicate that fall from 1.6744 is finished. Otherwise, near term outlook will remain mildly bearish and we'd continue to favor deeper decline.

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 1.5935 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 to as low a 1.6354 earlier today before recovering mildly. As noted before for a short term top is at least formed at 1.6744. Intraday bias remains on the downside for 1.6166 support first. Break there will put 1.5935 key near term support back into focus. On the upside, break of 1.6573 resistance is needed to indicate that fall from 1.6744 is finished. Otherwise, near term outlook will remain mildly bearish and we'd continue to favor deeper decline.

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 1.5935 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.