Daily Pivots: (S1) 1.3700; (P) 1.3756; (R1) 1.3785; More…
GBP/USD’s break of 1.3725 support today suggests that rebound from 1.3601 has completed at 1.3912 already. Intraday bias is back on the downside. After rejection by 55 day EMA, fall form 1.4248 is likely ready to resume for 1.33842 key support level next. For now, risk still stay mildly on the downside as long as 1.3912 resistance holds, in case of recovery.
In the bigger picture, as long as 1.3482 resistance turned support holds, we’d still treat price actions from 1.4248 as a corrective move. That is, up trend from 1.1409 (2020 low) is in favor to resume. Decisive break of 1.4376 key resistance (2018 high) would indeed carry long term bullish implications. However, sustained break of 1.3482 will at least bring deeper fall to 38.2% retracement of 1.1409 to 1.4248 at 1.3164, or even further to 61.8% retracement at 1.2493.
