GBPUSD remains vulnerable to a move lower. Price bounced off the 38% Fibonacci retracement of the longer-term upward move from 1.1958 to 1.3514. Price is in bearish trend also in the short-term and I continue to expect price move lower.
The Daily candlestick with the long upper tail is a sign of weakness. This bounce off the 38% Fibonacci retracement I believe will be short lived and price will move below 1.29 once again. The RSI is still not in oversold levels and has more downside. Resistance is found at 1.3070 and support at 1.2866. Breaking below 1.2866 will open the way for a move towards the 61.8% Fibonacci retracement.
In Elliott wave terms I believe we are still in a corrective wave and specifically inside wave C down of the correction of the entire impulsive move. Until we see a clear upward 5 wave structure we remain bearish GBPUSD.
