GBP/USD reversed sharply lower last week through 1.6000 with very sharp and aggressive sell off on Thursday, so it seems that decline from 1.6250 is unfolding in five waves. With that said, we suspect that pair will move even lower in this week.

At the moment we can count five down in wave (iii) followed by a wave (iv) bounce that could reach levels around 1.600-1.6050 before new sell-off occurs, this time down in (v) to 1.5800.

Forex Analysis by Gregor Horvat at ForexPros. com