Daily Pivots: (S1) 1.3265; (P) 1.3306; (R1) 1.3336; More…
No change in GBP/USD’s outlook as consolidation from 1.3203 is still in progress. Stronger recovery might be seen. But near term outlook stays bearish with 1.3617 resistance intact. And another fall is expected. Break of 1.3203 will resume the decline from 1.4376 and target 50% retracement of 1.1946 to 1.4376 at 1.3161 first. Break will target 61.8% retracement at 1.2875 next.
In the bigger picture, current development suggests that whole medium term rebound from 1.1936 (2016 low) has completed at 1.4376 already, with trend line broken firmly, on bearish divergence condition in daily MACD, after rejection from 55 month EMA (now at 1.4223). 61.8% retracement of 1.1936 (2016 low) to 1.4376 at 1.2874 is the next target. We’ll pay attention to the reaction from there to asses the chance of long term down trend resumption. For now, outlook will stay bearish as long as 55 day EMA (now at 1.3730) holds, even in case of strong rebound.
