GBP/USD Broke Below 1.4200

As I expected yesterday, GBP/USD broke below the support level at 1.4200. The question is what follows next? Its first target – and first level of support – would be at 1.4150. I think it is quite possible for the pair to break below that level too, and soon. Should that happen, it will likely continue falling towards the previous low at 1.3830. A possible breakout below the support at 1.3830 could, in turn, lead to the pair revisiting the historical low at 1.3500. That, of course, is a very long-term prognosis. For now though I have opened short positions and I intend to keep them open for the foreseeable future.