GBP/USD so severely oversold after 3 weeks of losses that it is becoming almost too risky to run shorts, but we must stick with the bear trend while we watch very carefully for a positive signal. A break below 1.4600 certainly cannot be ruled out and targets 1.4585. From here down to the 2015 low of 1.4563 is very important indeed. Exit shorts and try longs within this band in such oversold conditions but we need stops below 1.4550. Obviously a break and CLOSE below 1.4560 keeps bears in control and initially targets 1.4529/25.
I need a bullish confirmation to suggest the bear trend is over in the short term at least, but we are already testing important 5 year trend line support so be careful if running shorts. First resistance at 1.4656/60 then stronger resistance at 1.4688/93. Be careful with shorts here and if you try, use a stop above 1.4705. A break higher targets 1.4720/24 then a selling opportunity at 1.4745/50. Try shorts with stops above 1.4780.