Cable is yet to clear out the longs below, but perhaps the bulls are not throwing in the towel just yet. The point of control, PoC, in GBP/USD is located down at 1.1470 but the sell-off has yet to break the key support structure at 1.1550. The following illustrates the technical landscape from a daily and hourly perspective.

The W-formation is troubling for the bulls as a move into the neckline of the reversion pattern as illustrated above. Such a move would put heat onto in-the-money long positions built up over the week in three days of higher highs. We have seen a partial squeeze into those longs but the price has stalled in the US session in what was a volatile start to the day, hitting shorts in the New York open.
The Fibonacci tool has been drawn the current high:


A move into the neckline of the W-formation has a confluence with the 50% mean reversion at 1.1452 before the 61.8% Fibo at 1.1406 on a break below 1.1450. A break of the trendline support opens risk of a break of 1.1270 and then a really significant 1.1060 area. On the upside, with risks of support holding, 1.1675 is the top of a volume cluster.

While above 1.1547, as per the hourly time frame, a break of 1.1584 opens such risk of a move to 1.1675 in the near term
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