After breaking below 1.6271 support, GBPUSD formed a trading range between 1.6167 and 1.6371. The price action in the trading range is more likely consolidation of downtrend from 1.6721. As long as 1.6371 resistance holds, we’d expect downtrend to resume and one more fall towards 1.6000 area is still possible. However, above 1.6371 will indicate that a short term cycle bottom has been formed at 1.6167 level on 4-hour chart, and the fall from 1.6721 has completed, then further rally could be seen to 1.6500 area.

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