GBPUSD has been in a downtrend since July 15 when it hit a 6-year high of 1.7190. The pair has been making lower highs and lower lows since then. The bearish market structure is being supported by the fact that prices are below the Ichimoku cloud and also the tenkan-sen and kijun-sen lines are negatively aligned.
Daily momentum is negative but is approaching oversold levels. The stochastic is also in oversold territory therefore cautioning of possible consolidation in prices in the short term. Any bounce upwards would be capped by resistance at 1.5721. This is the 61.8% Fibonacci retracement level of the upleg from 1.4811 (July 2013 low) to 1.7190 (July 15 high). To the downside, there is scope to target the 78.6% Fibonacci level at 1.5321.