Daily Pivots: (S1) 1.3236; (P) 1.3268; (R1) 1.3327; More…
GBP/USD’s rebound from 1.3158 accelerated higher today and immediate focus is now on 1.3479 resistance. Decisive break there will argue that fall from 1.3867 has completed as a correction at 1.3158. Intraday bias will be turned back to the upside for retesting 1.3867 high. Nevertheless, rejection by 1.3479 will keep near term outlook bearish for a break through 1.3158 low at a later stage.
In the bigger picture, considering bearish divergence condition in both D and W MACD, a medium term top should be in place at 1.3867. Firm break of 1.3008 support will argue that fall from 1.3867 is at least correcting the 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 until further development.
