Daily Pivots: (S1) 1.3106; (P) 1.3136; (R1) 1.3174; More…
Intraday bias in GBP/USD remains on the downside for the moment. Sustained trading below 1.3140 support should confirm completion of double top pattern (1.3787, 1.3725). Further decline should then be seen to 61.8% retracement of 1.2099 to 1.3787 at 1.2744 next. On the upside break of 1.3247 support turned resistance is needed to indicate short term bottoming. Otherwise, risk will stay on the downside in case of recovery.
In the bigger picture, rise from 1.0351 (2022 low) is still seen as a corrective move. Sustained trading below 55 W EMA (now at 1.3185) will argue that a medium term top has already formed and bring deeper fall back to 1.2099. Firm break there will confirm bearish reversal. In case of another rise, strong resistance should emerge below 1.4248 (2021 high) to cap upside.
. Further decline should then be seen to 61.8% retracement of 1.2099 to 1.3787 at 1.2744 next. On the upside break of 1.3247 support turned resistance is needed to indicate short term bottoming. Otherwise, risk will stay on the downside in case of recovery.){kind=link}