Daily Pivots: (S1) 1.2108; (P) 1.2138; (R1) 1.2164; More…
A temporary low should be in place at 1.2109 in GBP/USD and intraday bias is turned neutral first. Some consolidations could be seen, and stronger recovery cannot be ruled out. But near term risk will stay on the downside as long as 1.2618 support turned resistance holds. On the downside, decisive break of 1.2075 fibonacci level would carry larger bearish implication and target 1.1801 support next.
In the bigger picture, fall from 1.3141 medium term top could still be a correction to up trend from 1.0351 (2022 low) only. But risk of complete trend reversal is rising. Sustained break of 38.2% retracement of 1.0351 to 1.3141 at 1.2075 will pave the way to 61.8% retracement at 1.1417. For now, risk will stay on the downside as long as 55 D EMA (now at 1.2526) holds, in case of rebound.
