GBPUSD fell sharply lower three weeks back after vote counts for EU membership showed that UK wants to leave the Euro zone. The pair fell to a new low which was technically expected as you know since we counted a bounce from 1.3850 as a corrective fourth wave. So despite the very strong leg down, traders should be aware of a turn back to the upside in the weeks ahead since we see the price in the fifth wave of decline; the final wave of a five wave fall from 2015 high. Technically speaking, 1.2500-1.2700 can be a support area for the pair.
GBPUSD, Daily
On the lower time frame, GBPUSD is trading at a new low, following a recent break out of a triangle that was recognized in wave four. If that was wave four, then the current fifth wave down is the final part of a bearish impulse from 1.5030 high. That said, traders need to be aware of a limited downside, and a potential turn up into a strong recovery later this month, but after 1.2500-1.2700 region is achieved which is our next projection zone.
GBPUSD, 4H
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