GBP/USD Daily Chart" title="GBP/USD Daily Chart" width="474" height="242">
Short-Term Trend: weak uptrend
Outlook: GBP rallied to 1.6667 (just abv the 1.6648 Fibonacci level) and pulled back sharply. So, we now have a key reversal day from last Friday. And that means that most likely wave (c) is complete. And based on the weekly price pattern (the huge Contracting Triangle from Jan 2009 low), wave (E) should also be complete. That all means one thing: a big move down lies ahead. The 1st level of potential support is seen at 1.6220 and break below there will be a strong confirmation of the bearish case.
On the upside, only abv 1.6740 will negate.
Strategy: Holding short from 1.6610 is favored. Stop at 1.6750.