GBP/USD was testing the prominent resistance level at 1.6120 which is a previous low in August & 61.8% Fibonacci level.
Friday's daily candlestick was a short body candlestick which indicates weakness of the bulls at this important junction of the chart which was followed by the heavy bearish reaction today.
Yesterdays daily candlestick is very bearish closing below 1.6000 the daily support which is bearish signal.
As we see on the 4H chart, we had a congestion zone (supply) at our resistance area 1.6070-1.6150.
This consolidation was followed by a very bearish 4H engulfing candlestick & also at the retest of it came very bearish indicating the strength of bears there.
It's important to note that the pair managed to close below the last swing high at 1.6030 indicating signs for structural failure of the ongoing uptrend.
Also we had obvious bearish breakout of the marked bullish channel & the short-term uptrend line.
Now it's suggested to go short at the retest of backside of lower limit of the broken bearish channel with SL 4H closure again inside the broken channel.
Profits should be taken every 50 pips till 1.5800.
