Another Top confirmed in GBP/USD? Some may consider the recent break of 1.61 – round number and 50% Fib – as confirmation for the Tweezer Top/Dark Cloud Cover bearish reversal pattern formed.
If that interpretation holds, 1.58-1.59 becomes viable downside targets. However, huge uncertainty lies ahead around 1.60 that saw price fluctuate between 1.595 – 1.61 for an extended period of time back in Q4 2012. Furthermore, a short term retracement could potentially occur following such an intense move downward in such a short time.
Should there be any retracement back up to the 38.2% (confluence with peaks found in Oct '12), price action around the level could provide further confirmation from there.
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