Daily Pivots: (S1) 1.5775; (P) 1.5875; (R1) 1.5982
With 4 hours MACD crossed above signal line, an intraday low is in place in GBP/USD at 1.5769. Some consolidation could be seen but recovery should be limited by 1.6133 support turned resistance and bring fall resumption. Below 1.5769 will target 161.8% projection of 1.7043 to 1.6111 from 1.6740 at 1.5232 next.
In the bigger picture, decisive break of 1.6111 support confirmed the case that GBP/USD has topped out in medium term by completing a head and shoulder top reversal pattern (ls: 1.6742, h: 1.7043, rs: 1.6740). Also, note that medium term rise from 1.3503 is treated as a correction in the long term decline from 2.1161 and should have completed too. Medium term outlook is turned bearish and the current fall from 1.7043 is tentatively treated as resumption of the long term down trend, which should target a new low below 1.3503 eventually. On the upside, break of 1.6740 resistance is needed to invalidate this bearish view.
Source: ActionForex