Yesterday the GBP/USD reached the 50% retracement level of the Bearish move that began on April 30th at 1.63007 and ended after establishing a higher 6 month low at 1.52675. The previous low for the pair was set the week of January 08 of this year. Price rebounded from this low and has been in a tug-of-war between bears & bulls since with every new high followed typically by a higher low and establishing a bearish flag formation on the daily charts. A bearish flag formation might look like price wants to go higher, and indeed it does for a little while, but indicates a longer term bearish expectancy. Price has tested the 62 EMA at 1.5745 and close below both the Monthly Pivot at 1.56676 & the Weekly Pivot at 1.56356 after spending 4 days consolidating between the 62 EMA & these Pivots. Price will now need to follow through and break well below 1.5772 in order to confirm that the Bears are firmly in control. If it does, look for key support levels at 1.5550 and 1.53476. Should price pull back into the channel and trade higher before the close in New York it will have to close above 1.5780 before meeting additional Resistance at the Weekly R1 of 1.5818. All indications at this point, barring any fundamental surprises are that the Bears will maintain control in the bigger picture.
Happy Trading!