The indicates that the market was overbought which supports my prediction of a trend reversal into a downtrend. The failure swing also supports my prediction of a short trade. Moreover, the current pattern of a suggests the market's nature.
It is possible for the GBP to now break through the 0.500 or even level, so it is difficult to estimate where a suitable take profit should be set up - it all depends on how the GBP becomes. In case my prediction turns out to be incorrect, a stop loss right above the 1.5688 will be most suitable. If that does happen, the strong resistance may become a support and it could be a long trade thereafter.
Stop Loss: 1.5696
Take Profit: 1.5635
Risk/Reward Ratio: 1.77