GBP/USD outlook - correction possible before further sell-off
Pair turned lower from around point D of Cypher formation. As per Cypher rules, the pair dropped 38.2% of CD. Here I plotted retracement from 1.3835 (C) to 1.4770 (latest high)
The 38.2% retracement comes at 1.4413. Today's low stands at 1.4403. As per Cypher .. break below 38.2% could yield drop to 61.8% level at 1.4192.
However, hourly chart shows a possible bullish price RSI divergence. Plus, a five wave structure may have been completed at the daily low of 1.4405, thus A-B-C pattern could unfold and take the pair higher to 1.4480-1.45 levels.
Note - I would not mind ditching the above bias if I see prices break below daily low of 1.4405
The 38.2% retracement comes at 1.4413. Today's low stands at 1.4403. As per Cypher .. break below 38.2% could yield drop to 61.8% level at 1.4192.
However, hourly chart shows a possible bullish price RSI divergence. Plus, a five wave structure may have been completed at the daily low of 1.4405, thus A-B-C pattern could unfold and take the pair higher to 1.4480-1.45 levels.
Note - I would not mind ditching the above bias if I see prices break below daily low of 1.4405