Daily Pivots: (S1) 1.3632; (P) 1.3662; (R1) 1.3717; More…
GBP/USD’s fall from 1.3833 resumes after brief consolidation and hits as low as 1.3531 so far. Intraday bias is back on the downside for retesting 1.3410 low. Firm break there will resume larger fall from 1.4280 to 1.3164 medium term fibonacci level. On the upside, break of 1.3697 will turn intraday bias to the upside for 1.3833 resistance instead.
In the bigger picture, the structure of the fall from 1.4248 suggests that it’s a correction to the up trend from 1.1409 (2020 low) only. While deeper fall cannot be ruled out yet, downside should be contained by 38.2% retracement of 1.1409 to 1.4248 at 1.3164, at least on first attempt, to bring rebound. On the upside, firm break of 1.4376 key resistance (2018 high) will add to the case of long term bullish reversal. However, sustained trading below 1.3164 will revive some medium term bearishness and target 61.8% retracement at 1.2493.
