Dollar bulls have been beating Pound since the start of European session. However, gbp/usd has gone around 100 pips for today and that is close to average daily range for the pair. Another point in favor of a reversal is that the pair has just reached and went a little beyond Friday’s lows. From daily perspective that is an extreme point and a bounce is highly likely.
One more point in favor of a reversal upwards is the fact that most moves in major currency pairs stall around 16:00 GMT when big market sharks take their profits for the day or even reverse their positions. So, I assume the low for today has been made and now we need to wait for some candle reversal pattern.
Oh, yes. I almost forgot one more point that supports my idea about gbp/usd turning around and starting rising! It now sits on 200 sma on 1 hour chart. That is a strong argument for closing all shorts and contemplating a long. Let’s wait some 45 minutes to get some confirmation whether big short positions are being closed or not. Next support level is just 5 pips lower at 1.5575.