Daily Pivots: (S1) 1.1813; (P) 1.1836; (R1) 1.1868; More…
A temporary low is formed at 1.1801 with current recovery and intraday bias in GBP/USD is turned neutral first. Another fall could be seen as long as 1.1914 support turned resistance holds. Below 1.1801 will target 38.2% retracement of 1.0351 to 1.2446 at 1.1646. Firm break there would carry larger bearish implications. Nevertheless, break of 1.1914 will turn bias back to the upside for stronger rebound.
In the bigger picture, break of 1.1840 support argues that a double top pattern (1.2445, 1.2446) was formed after rejection by 55 week EMA (now at 1.2228). Deeper decline should be seen back to 38.2% retracement of 1.0351 to 1.2446 at 1.1646. Sustained break there will raise the chance of trend reversal and target 61.8% retracement at 1.1151.
