Daily Pivots: (S1) 1.2243; (P) 1.2283; (R1) 1.2340; More….
With 1.2346 minor resistance intact, further decline is expected in GBP/USD. Corrective rebound from 1.1958 should have completed at 1.2582. Further fall should be seen to retest 1.1946/58 key support zone next. However, break of 1.2346 will turn bias back to the upside for retesting 1.2582.
In the bigger picture, we’d remain cautious on medium term bottoming around 1.1946 (2016 low). Sustained trading above 55 week EMA (now at 1.2724) will extend the consolidation pattern from 1.1946 with another rise to 1.4376 resistance. Nevertheless, decisive break of 1.1946 will resume down trend from 2.1161 (2007 high) to 61.8% projection of 1.7190 to 1.1946 from 1.4376 at 1.1135.
