Daily Pivots: (S1) 1.2849; (P) 1.2898; (R1) 1.2935; More…
GBP/USD dropped to as low as 1.2823 today and break of 1.2849 indicates resumption of corrective fall from 1.3514. Intraday bias is back to the downside for 50% retracement of 1.1958 to 1.3514 at 1.2736. On the upside, break of 1.3018 resistance is need to indicate short term bottoming. Otherwise, further fall remains in favor in case of recovery.
In the bigger picture, rise from 1.1958 medium term bottom is not completed yet despite current pull back form 1.3514. Such rally is expected to resume later to 1.4376 key resistance. Reactions from there would decide whether it’s in consolidation from 1.1946 (2016 low). Or, firm break of 1.4376 will indicate long term bullish reversal. In any case, for now, outlook will stay bullish as long as 1.2582 resistance turned support holds.
