Daily Pivots: (S1) 1.2426; (P) 1.2637; (R1) 1.2783; More…
GBP/USD’s decline accelerated to as low as 1.2409 so far today. There is no sign of bottoming yet and intraday bias stays on the downside. Sustained trading below 61.8% retracement of 1.1958 to 1.3514 at 1.2552 will pave the way to retest 1.1958 low. On the upside, break of 1.2725 support turned resistance will retain near term bullishness and turn bias to the upside for 1.3200 resistance instead.
In the bigger picture, current development argues that rise from 1.1958 might have completed at 1.3541. It’s merely just the third leg of the consolidation pattern from 1.1946 (2016 low). Decisive break of 1.1946 will resume larger down trend from 2.1161 (2007 high). Though, in any case, there will be no confirmation of bullish trend reversal as long as 1.4376 resistance holds.
