GBP/USD - The Pound broke the support 1.6618

The Pound broke the support specified in Friday's report 1.6618 and reached both of the suggested targets 1.6552 & 1.6486 successfully. This was an expected and normal result for breaking the rising trendline from November 13th bottom, and as we expected, this break gave the technical outlook for the medium-term a hard hit that initiated a correction for the whole rising move from 1.5705. We will not be surprised when we see prices below 1.63 this week, like 1.6291 & 1.6152. As for the short-term, Fibonacci 61.8% at 1.6717 is resistance of the day, and only breaking this level will improve the technical outlook, giving a chance to reach 1.6841 first, and then 1.6899. Short-term support is 1.6486 and breaking it would indicate a continuation of the drop towards 1.6429, 1.6291 and may be 1.6152. It is obvious after breaking the rising trendline that odds favor more downside activity, but we can not neglect the possibility of a sharp correction now that the RSI have reached oversold territory, on most timeframes, from the 5-min chart to the 4-hour chart.  

Support:
• 1.6486: the rising trendline from Friday's low on intraday charts.
• 1.6429: Fibonacci 38.2% for the whole rise from 1.5705.
• 1.6340: Nov 2nd low, and a well known previous support/resistance area.

Resistance:
• 1.6717: Fibonacci 61.8% for the short-term.
• 1.6841: Nov 9th high.
• 1.6899: Aug 5th low.