The triangle scenario that we proposed was clearly wrong. However, the break below 1.9337 signals that the GBPUSD is headed to the 1.85/86 level. This is the confluence of the 61.8% of 1.7047-2.1160 / 100% extension of 2.1160-1.9337/2.0396 (C=A as well as former 4th wave). In other words, there is plenty of downside action left. Similar to the EURUSD, we’ll look to position for the rest of this decline. Former support at 1.9337 is now potential resistance.
