GBP/USD's fall from 1.6742 accelerates today and reaches as low as 1.6140 in early European session. Break of 1.6232 support confirms that the rise to 1.6742 was a terminal impulse following a triangle consolidation. In other words, GBP/USD should have made an important top with bearish divergence conditions in 4 hours MACD and RSI. FUrther decline should now be seen to 1.5810 support next. While some initial support might be seen from medium term rising trend line (now at 1.5660), we'd extend GBP/USD to break through it eventually. On the upside, above 1.6327 minor resistance will turn intraday outlook neutral first. But recovery should be limited well below 1.6742 high and bring fall resumption.
In the bigger picture, rise from 1.3654 is treated as the third leg of the correction that started at 1.3503, which correct the larger down trend from 2.1161. Such rally from 1.3654 should be in the last stage after meeting target zone of 1.6428/7332 (38.2% and 50% retracement of 2.1161 to 1.3503). Indeed, considering last week's sharp reversal, and with daily MACD breaking its down up trend, such rise might have completed at 1.6742 already. Break of 1.5801 support will now be an important signal that the whole correction has finally completed and will turn focus to next key support of 1.4984 for confirmation. Meanwhile, while another rise cannot be ruled out, focus will remain on reversal signal as we'd expect the whole correction from 1.3503 to conclude inside this 1.6428/7332 area.