(ActionForex.com)GBP/USD dives sharply today and reaches as low as 1.6164 so far. Intraday bias remains on the downside and current fall from 1.7190 should now target 50% retracement of 1.4813 to 1.7190 at 1.6002. On the upside, break of 1.6342 resistance will turn bias neutral and bring consolidations. But upside should be limited below 1.6643 and bring another fall.
In the bigger picture, price actions from 1.3503 (2009 low) are treated as consolidations to long term down trend from 2.1161. The current development, with medium term top formed at 1.7190, argues that such consolidation is possibly completed, just below 50% retracement from 2.1161 to 1.3503 at 1.7332. The firm break of 55 weeks EMA affirmed this bearish case and GBP/USD is now heading back to 1.4813 key support level.
