Black line- support (broken)
Green line- horizontal support (broken)
Blue lines- Fibonacci extensions
Red line- bearish RSI divergence
In our previous analysis we noted that a break below 1.2110 would provide a bearish signal. GBPUSD has broken below short-term support level and is now heading towards our downside target zone of 1.19-1.20. Price has already reached the 61.8% Fibonacci extension of the first leg down. Price has started making lower lows and lower highs. Bears are taking control of the short-term trend. Next downside target is the 100% Fibonacci extension at 1.1907.
