Rally to the retracement

GBP / USD 's rebound from 1.5271 under the short term be extended to as high as 1.5817 last week and closed strong. Could remain on the upside early this week and the current rally should continue towards 61.8% retracement of 1.6618 to 1.5271 at 1.6103. On the downside, below 1.5666 minor support, though, would indicate that the rebound is likely to finish and had to flip bias back to the downside for retesting 1.5271 low first.

In the bigger picture, price actions from 1.3503 are treated as consolidation to long-term downtrend from 2.1161, and should be close to the end, if not completed at 1.6476. Near-term outlook is mixed as a rebound from 1.5271 has the properties of many possible chances are approximately equal. But in any case, upside should be limited below 1.6618 resistance. Finally, we hope to break 1.4229 support for the return signal downtrend from 2.1161, and that should send the GBP / USD through 1.3503 (2008 low).
In the long term picture, corrective nature of the multi-decade advance from 1.0463 (85 low) to 2.1161 and the impulsive nature of the fall from there suggests that GBP / USD is now in the early stages of long-term downward trend. Another low below 1.3503 is expected after consolidation from 1.3503 is confirmed to be completed.