GBP/USD’s decline from 1.2446, the third leg of the corrective pattern from 1.2445, resumed last week by breaking through 1.1960. But recovery from 1.1914 indicates that a temporary low was formed. Initial bias is turned neutral this week first. Risk will stay on the downside as long as 1.2269 resistance holds. Break of 1.1914 will target 1.1840 support and possibly below.
In the bigger picture, rise from 1.0351 medium term bottom is at least correcting whole down trend from 1.4248 (2021 high). Further rise is expected as long as 1.1644 resistance turned support holds. Next target is 61.8% retracement of 1.4248 to 1.0351 at 1.2759. Sustained break there will pave the way back to 1.4248.
In the longer term picture, as long as 1.4248 resistance holds (2021 high), long term outlook will remain neutral at best. Down trend from 2.1161 (2007) could still resume for another low through 1.0351 at a later stage.
