Daily Pivots: (S1) 1.2822; (P) 1.2873; (R1) 1.2957; More…
GBP/USD rises to as high as 1.2924 so far as rebound from 1.2661 short term bottom extends. Intraday bias stays on the upside for 1.2956 support turned resistance. At this point, we’d still expect upside to be limited by 1.2956 to bring larger down trend resumption. On the downside, below 1.2811 minor support will turn bias to the downside for retesting 1.2661 low first. However, decisive break of 1.2956 will turn focus to 1.3212 key resistance instead.
In the bigger picture, whole medium term rebound from 1.1946 (2016 low) should have completed at 1.4376 already, after rejection from 55 month EMA (now at 1.4091). Current downside acceleration argues that it’s possibly resuming long term down trend. In any case, outlook will stay bearish as long as 1.3212 resistance holds. Retest of 1.1946 should be seen next.
