GBP/USD - 1.3896.. Although cable fell one tick below Fri's 1.3888 in Asia n rebounded to 1.3932 on short-covering in Europe, the price ratcheted lower on cross-selling in sterling n later hit session lows of 1.3876 in NY.

On the bigger picture, despite cable's brief break of 2016 post-Brexit low of 1.1491 to a near 35-year trough of 1.1412 in mid-Mar 2020 on safe-haven USD's demand following free fall in global stocks, price rallied to 1.3686 on the last trading day of 2020 following a last-minute EU-UK trade deal, then to a near 34-month, 1.4241 peak in late Feb suggests a major low is made. Despite hitting a 3-year peak of 1.4250 on Jun 01, a selloff to as low as 1.3753 in Jul confirms a long-awaited correction has occurred. Having said that, a subsequent rally to as high as 1.3983 last Fri confirms low has been made n stronger retracement to 1.4069/74 can't be ruled out. Below 1.3844 signals top n heads to 1.3720/30.

Today, cable's break of 1.3888 sup signals corrective decline FM Fri's 1-month peak at 1.3983 remains in progress n weakness two 1.3844 is seen, 'bullish convergences' on hourly indicators would keep price abv 1.3821/26 n bring rebound. Only abv 1.3932/35 indicates correction is possibly over, 1.3960/70.

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