Daily Pivots: (S1) 1.1813; (P) 1.1836; (R1) 1.1868; More…
Intraday bias in GBP/USD remains neural first. Firm break of 1.1914 resistance turned support will indicate short term bottoming, and bring stronger rebound to 55 day EMA (now at 1.2055). On the downside, though, break of 1.1801 will resume the fall form 1.2446 to 38.2% retracement of 1.0351 to 1.2446 at 1.1646.
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. Nevertheless, strong rebound from current level, followed by firm break of 55 day EMA, will invalidate this bearish view and indicate that rise from 1.0351 is still in progress.
