Yesterday the last bullish impulse to 1.5689 was capped at 1.5800, so that GBP/USD could continue trending lower breaking down 1.5670 and testing the next target at 1.5630 ahead of the psychological support at 1.5600.
Yesterday’s outside bearish engulfing candlestick confirms negative bias and keeps the downside direction favored.
It is important to note that the pair has already broken down a long-term uptrend line that came to meet the pair around 1.6000.
The pair remained under heavy SELLING pressure, before recovery attempt from 1.5675 zone succeeded to push the pair above 1.5750 level in the first place.
Last week price level 1.5830 was recommended as a valid SELL entry with SL above 1.5895 which got activated shortly after. This week we need to have clear breakdown of the weekly low 1.5673. Otherwise, consolidation again above 1.5750 might hinder the bearish scenario.
Theoretically speaking, the pair has confirmed a giant "double-top" pattern to be targeting 1.5350 as long as the pair is consolidating below neck-line around 1.5830 - 1.5890.