On the 4-hour chart, we spotted the Hidden Divergence between the price and the Stochastic Oscillator. Based on this fact, we predict GBP/USD to go down to the 1.2686-1.2335 area. If this pair can easily break and pass that area, there is a high probability for GBP/USD to continue its down movement to reach 1.2161 as the downward target as long as the currency pair does not retrace up and closes above the 1.2542 level.
The overall bias for GBP/USD now is bearish.
(Disclaimer)
