Daily Pivots: (S1) 1.5889; (P) 1.5977; (R1) 1.6038;
GBP/USD’s fall extends further to as low as 1.5769 so far today, meeting mentioned target of 100% projection of 1.7043 to 1.6111 from 1.6740 at 1.5805. At this point, intraday bias remains on the downside and further decline should be seen towards 161.8% projection at 1.5232 next. On the upside, above 1.6047 minor resistance will turn intraday outlook neutral and bring recovery. But upside should be limited well below 1.6466 resistance and bring fall resumption.
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.