The trend is your friend in FX but not when the trend is at the end.
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
You'd expect some form of pullback from these levels just to unwind RSI oversold conditions. Timing the bounce will be the tricky part. If we clear today's open at 1.4004 we could head higher. I wouldn't enter the market until then.