British Pound Technical Outlook

The GBPUSD bearish pattern has remained intact. “Bigger picture, we view the decline from 2.1160 as wave (A) in a larger A-B-C correction. Wave (B) was a clear 3 wave countertrend rally that ended just shy of the 61.8% level of A. Wave © is underway now and specifically, wave 1 of © is underway now.

The longer term (8 to 12 weeks) target is near 1.8500.” As long as price is below 2.0191, we maintain that large wave C is underway from 2.0396.