British Pound Technical Outlook

British Pound / US Dollar

A former 4th wave price extreme at 1.6680 held as resistance and the GBPUSD has dropped below a support line from May 18. Coming under 1.5775 would bolster the bearish bias. I wrote yesterday that “given the 5 wave count from 1.4513 (wave C of the rally from 1.35), it is worth going short.” The GBPUSD is notorious for flat corrections so beware of a spike above 1.6438 prior to the next bear leg.