Blue lines- Fibonacci retracements
GBPUSD is trading around 1.1045 after making a low at 1.0923 earlier today. Price made a new lower low reaching the 50% Fibonacci retracement of the entire advance from 1.0344 to 1.1494. Price bounced at the 38% retracement but the bounce was short lived and price soon after made new lows at the 50% retracement. Since our first warning signal at the beginning of the decline, we noted that the most probable target is the 61.8% retracement. At this retracement level we usually see trend reversal. This is a key support level. As long as price is below yesterday's highs, we remain short-term bearish looking for new lows towards 1.0780.