GBP/USD is very slow and choppy above 1.5900 level so we think that move from the latest low is corrective, therefore we think that recovery is temporary.

In fact we labeled a decline from 1.6260 with five waves down which is evidence of a bearish price action, marked as wave (a) or (i). In both cases we expect a third leg lower once corrective wave (b) or (ii) will complete a retracement. Ideally this will occur somewhere between 38.2-61.8% retracement area compared to previous decline. In that region we also have a parallel trend line connected from 1.6161 swing that could also react as a resistance level.

With that said traders should be aware of a bearish waves in the next few days. This view remains valid as long as price trades beneath 1.6260 high.

Forex Analysis by Gregor Horvat at ForexPros. com