It is possible that GBP/USD will rebound to 1.5600 in the short-term but eventually the move down should continue and probably reach the strong clustering of targets at the 1.5410 support level where wave C will equal A. Thereafter there is the possibility of a move all the way down to the 1.5330 lows – particularly as the target from the channel lies at a similar level and the wave sequence supports such an interpretation.

Analysis prepared by:

Joaquin Monfort
Forex4you analyst