I am pretty much convinced after yesterdays 17th Dec 2014 Bearish day candle engulfing (Marubuzo candle) the range that GBP/USD has been consolidating in since 14th November and that cable has continued its downtrend.
Based on ABCD Fib extension there is more downside to be seen. Price should continue testing the outer trend line creating Lower Highs. Price has had some strong pressure to the upside due to the Demand zone highlighted in GREEN. This is where institutions have placed long orders due to the cheap Sterling-USD. The first Demand Zone was created in August 2013 where price rallied-drop-rallied creating a strong DZ.
The second Demand Zone is where my Fib D extension target is. I am expecting price to hit 1.5260
Based on ABCD Fib extension there is more downside to be seen. Price should continue testing the outer trend line creating Lower Highs. Price has had some strong pressure to the upside due to the Demand zone highlighted in GREEN. This is where institutions have placed long orders due to the cheap Sterling-USD. The first Demand Zone was created in August 2013 where price rallied-drop-rallied creating a strong DZ.
The second Demand Zone is where my Fib D extension target is. I am expecting price to hit 1.5260
