Daily Pivots: (S1) 1.2844; (P) 1.2888; (R1) 1.2914; More…
GBP/USD is staying in range of 1.2798/2935 and intraday bias remains neutral at this point. No change in the bearish outlook with 1.2956 support turned resistance intact. Deeper decline is expected in the pair. On the downside, below 1.1798 minor support will target 1.2661 low first. Break will resume larger fall from 1.4376. However, considering bullish convergence condition in daily MACD, break of 1.2956 will indicate medium term bottoming. And stronger rebound would be seen back to 55 day EMA (now at 1.3054) and above.
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 38.2% retracement of 1.4376 to 1.2661 at 1.3316 holds. Retest of 1.1946 should be seen next.
