• GBPUSD reversed from key resistance level 1.3700
• Likely to fall to support level 1.3500.

GBPUSD currency pair recently reversed down from the key resistance level 1.3700 (former top of wave (4) from the start of November) intersecting with the upper daily Bollinger Band , 50% Fibonacci correction of the downward impulse from May and the resistance trendline of the wide weekly down channel from last year. The downward reversal from the resistance level 1.3700 stopped the previous sharp upward impulse wave (C) from the middle of December.

Given the falling sterling sentiment as can be seen across he FX markets today – GBPUSD currency pair can be expected to extend the losses toward the next support level 1.3500.