GBP has been crushed across the board for 18 months now and we are entering extreme areas on GBP/USD .
On this Monthly chart we can see that GBP has bounced historically somewhere in the area shown. The problem is that this area is 500+ pips wide.
Traders need to be vigilant and although the fundamentals tell us we're probably headed lower the chance of a pullback from these oversold conditions is high.
A break above 1.4016 could signal that BUYERS have entered this market so if we make a move north I'll be looking to get LONG somewhere above 1.4015