GBP/USD plunged yesterday, falling below the lower bound of a triangle formation that had been containing the price action since the 2nd of February. This has turned the short-term outlook to the downside and increases the possibilities for further declines. Currently, the rate is trading slightly below the 1.4320 (R1) resistance line and I would expect it to continue lower, perhaps for a test near the 1.4200 (S1) area. The trigger for another negative leg could be a slowdown in the UK wage growth when we get the nation’s employment report later today. Further declines are also supported by our momentum indicators. The RSI continued lower and now appears ready to fall below 30, while the MACD stands below both its zero and trigger lines, pointing south. In the bigger picture, the price structure remains lower peaks and lower troughs below the 80-day exponential moving average, which is pointing down. Thus, I still see a negative longer-term picture and I would treat the 21st of January – 4th of February recovery as a corrective phase for now.