GBP/USD has sold off to its 55 day ma at 1.6958 and the market is finding some near term support here. Intraday we would allow for a small rebound from the 1.6958/55 day ma, but note intraday rallies are indicated to terminate circa 1.7035 and remain capped by the 20 day ma at 1.7090.
We view the market as having topped at 1.7195 and look for losses back to the 1.6905 2014 uptrend and the risk has increased that we will see a break below here now also. Failure will trigger losses to 1.6694/30 then 1.6280/53 the 38.2% retracement of the move from 2013 to 2014 and the 2014 low.
CB