Daily Pivots: (S1) 1.3212; (P) 1.3249; (R1) 1.3277; More….
With 1.3454 minor resistance intact, GBP/USD’s correction from 1.3651 could extend lower to 61.8% retracement of 1.2773 to 1.3651 at 1.3108. However, break of 1.3454 will indicate completion of the pull back. In that case, intraday bias will be turned back to the upside for retesting 1.3651 high.
In the bigger picture, current development argues that the long term trend in GBP/USD has reversed. That is, a key bottom was formed back in 1.1946 on bullish convergence condition in monthly MACD. Current rise from 1.1946 will target 38.2% retracement of 2.1161 (2007 high) to 1.1946 (2016 low) at 1.5466 next. In any case, medium term outlook will now stay bullish as long as 1.2773 support holds.
