GBPUSD drifting out of the channel and with some hindight perhaps this was obvious to happen at some point after such a strong and stable downtrend.
But where is it going here - is this reversal?
Well I'm holding my short positions for now because I think the most likely outcomes is some sideways drift to the fall back in the channel. Only the 0.5 fib from the top has been challenged so far and the highlighted bearish candles appear to have more oomph than smaller upward candles with wicks showing selling pressure.
I still think that one way or another ABC WXY WXYZ that this will end up at my 1:1 target down at 1.27. Its a very strong downtrend now and I dont think there will be more than 0.5 retracements as we have seen on the way down.