Daily Pivots: (S1) 1.3332; (P) 1.3389; (R1) 1.3497; More…
GBP/USD’s recovery from 1.3252 extended higher today but upside is still capped well below 1.3574 resistance. Intraday bias remains neutral and further fall is in favor. On the downside, below 1.3252 will extend the decline from 1.3867 to 1.3008 structural support. Decisive break there will carry larger bearish implications.
In the bigger picture, considering bearish divergence condition in both D and W MACD, a medium term top should be in place from 1.3867. Firm break of 1.3008 support will argue that fall from 1.3867 is at least corrective the whole rise from 1.0351 (2022 low) with risk of bearish reversal. That would open up further decline to 38.2% retracement of 1.0351 to 1.3867 at 1.2524. For now, medium term outlook will be neutral at best as long as 1.3867 resistance holds, or under further development.
