Daily Pivots: (S1) 1.2049; (P) 1.2090; (R1) 1.2117; More…
Current strong rebound argues that rise from 1.1759 is not completed. But upside is held below 1.2292 resistance and intraday bias in GBP/USD remains neutral first. On the upside, firm break of 1.2292 will also complete a head and shoulder bottom pattern (ls: 1.1932; h: 1.1769; rs: 1.2002). Further rally should then be seen to 1.2666 key resistance next. On the downside, however, break of 1.2002 will bring deeper fall back to retest 1.1759 low.
In the bigger picture, fall from 1.4248 (2018 high) could be a leg inside the pattern from 1.1409 (2020 low), or resuming the longer term down trend. Deeper decline is expected as long as 1.2666 resistance holds. Next target is 1.1409 low. However, firm break of 1.2666 will bring stronger rise back to 55 week EMA (now at 1.2925).
