As you can see, GBPUSD dropped massively every since last night and the previous analysis, going far below our 1.3489 target, reaching 1.3328 level, above the March 23rd NWOG Consequent Encroachment. It recovered a bit after reach March 23rd NWOG but then it failed to reach the April 13th NWOG Low by less than a pip (6 points) and then dropped yet again, currently being traded at 1.3354.
I expect Cable to drop further below towards the Demand Zone and then bounce back up from there. However, so far it has reacted to the March 23rd NWOG, but if it drops below the Consequent Encroachment of that gap at 1.3327 and stabilize below it, it’ll go towards the Demand Zone.
However, if GBPUSD manages to retest the April 13th NWOG Low and break above it, we could see a rise towards 1.3427 level and then if it breaks above it and stabilizes there, it can go towards the 1.3460.