Daily Pivots: (S1) 1.2131; (P) 1.2163; (R1) 1.2193; More…
A temporary low should be in place at 1.2133 in GBP/USD and intraday bias is turned neutral first. Upside of recovery should be limited by 1.2346 support turned resistance and bring another decline. As noted before, consolidation pattern from 1.1946 should have completed with three waves to 1.2705 already. Below 1.2133 will target 1.1946/86 support zone. Break of 1.1946 will confirm our bearish view and resume the larger down trend.
In the bigger picture, fall from 1.7190 is seen as part of the down trend from 2.1161. There is no sign of medium term bottoming yet. Sustained trading below 61.8% projection of 2.1161 to 1.3503 from 1.7190 at 1.2457 will target 100% projection at 0.9532. Overall, break of 1.3444 resistance is needed to confirm medium term bottoming. Otherwise, outlook will remain bearish.
