GBP/USD's rebound from 1.5234 short term bottom continued to as high as 1.5740 last week. While GBP/USD loses some upside momentum, with 1.5527 support intact, further rise is still expected for 1.5779 resistance. Decisive break there will indicate that the whole decline from 1.6746 in GBP/USD is over and should bring further rally to 1.6165 resistance and above. Though, failure from 1.5779, followed by break of 1.5527 will indicate completion of the rebound from 1.5234 and should flip bias back to the downside for retesting this low.

In the bigger picture, price actions from 1.3503 are treated as consolidations to long term down trend from 2.1161. At this point, we're favoring the case that such consolidation is either finished with three waves to 1.6746, or five waves as a triangle at 1.6165. Deeper decline is in favor to 1.4229 key support and decisive break there should extend the long term down trend through 1.3503 low. Meanwhile, strong rebound ahead of 1.4229, or a break of 1.6165, will dampen the immediate bearish view and extend the consolidation from 1.3503 instead.

In the longer term picture, the corrective nature of the multi-decade advance from 1.0463 (85 low) to 2.1161 as well as the impulsive nature of the fall from there suggests that GBP/USD is now in an early stage of a long term down trend. Another low below 1.3503 is anticipated after consolidation from 1.3503 is confirmed to be completed.