The GBP/USD rebounded from support during the European session and now appears to be consolidating. The pair has been propped up by the EUR/GBP cross rate, due to weakness in the Euro and
European equities across the board. GBP/USD has come down from the 1.6300 area while EUR/GBP has gone straight up, so a consolidation in the GBP/USD over the next couple of days seems plausible. Also, the GBP has depreciated substantially against the commodity currencies recently (GBP/AUD: 714pips, GBP/NZD: 1325pips, GBP/CAD: 582pips.) If the U.S. equity markets start unwinding (down around 1.0% atm), then the commodity currencies should start depreciating against the GBP - giving GBP/USD support.
There's a small price inefficiency that has not been filled yet from 1.5750 - 1.5810. If this price inefficiency is not filled, and price moves below the .618 fib retracement at 1.5675 serving as support, it would be a clear
break of the consolidation and opens the door for a move down to 1.5500.
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