Sterling halted at a major confluence of resistance and can now resume lower to 1.60 (at a minimum). Wave-a x 1.618 marked the high of wave-c; the area of the previous 4th wave (the old pivot low) and the 38.2% retracement also combined to mark a strong reversal overnight. We view this reversal as a sign that the a-b-c upward correction from 1.60 is complete; whether wave-(2) or just (a) of (2), either interpretation calls for a move back to recent lows. S/t, the quick 5-wvave decline from 1.6252 suggests a near-term bounce before the downtrend resumes. Near-term support is the Gap Window b/w 1.6283/33. Conviction: Med/High Levels: Support – 1.6053, 1.6036, 1.6022 Resistance – 1.6165, 1.6230/80, 1.6442
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