Technically, we could see GBPUSD in the process of forming Wave 5, indicating a possible reversal. Wave 5 could travel 61.8% of the net length of wave 1 and 3 together, which is normally used as a target for sellers. On a weekly basis, if price could continue the decline and close below 1.3670 where the horizontal swing low support and round number threshold are, further downside could be opened up towards 1.3560-1.3584. However, GBPUSD could end its decline earlier as Stochastics indicates bullish pressure. If price bounces, a Quasimodo resistance at 1.39000 could be an interesting area for buyers to take profit if price successfully surpasses the 1.3800 support-turned-resistance level.
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