Trend is bearish here, but GBP is not at oversold. Right now market has reached strong support area, Yearly Pivot support 1 and major monthly Fib level. Monthly chart give us just single AB-CD pattern with nearest target at 0.618 extension – 1.3088. Currently 1.30-1.31 area looks unbelievable, but if we would suggest parity on EUR/USD and starting rate hiking cycle in US – why not? Still, this is very long-term picture and right now we’re mostly interested in reaction of the market on current support level.
on the weekly timeframe i see resistant at 1.5551. it would be perfect if we could get some reversal pattern around 1.5550 area. In that case, we can take the short position at this level. but I don't expect a direct move to it. I'll be expecting a retracement this week to the 1.5280-1.5240 area for an opportunity to go long to 1.555 area. But we might get a move to 1.5441 on monday before we get this retracement
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