GBP/USD dropped further to as low as 1.4230 but lost momentum and turned sideway. Some sideway trading might be seen initially this week but after all, another fall remains in favor as long as 1.4517 minor resistance holds. Below 1.4230 will target 100% projection of 1.6456 to 1.4783 from 1.5521 at 1.3848 next. However, break of 1.4517 will suggest that a short term bottom is fro med and bring stronger rebound towards 1.5053 resistance before staying another fall.
In the bigger picture, our bearish view remains unchanged. Fall fro 1.7043 is tentatively treated as resumption of the whole down trend from 2007 high of 2.1161. Such fall should target 61.8% projection of 2.1161 to 1.3503 from 1.7043 at 1.2310 after taking out 1.3503 low. On the upside, break of 1.5521 resistance is needed to be the first signal of bottoming. Otherwise, outlook will remain bearish.
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. Rebound from 1.3503 should have completed and the whole fall from 2.1161 is likely resuming for 61.8% projection of 2.1161 to 1.3503 from 1.7043 at 1.2310 next.