Daily Pivots: (S1) 1.3220; (P) 1.3253; (R1) 1.3279; More…
Intraday bias in GBP/USD is turned neutral as a temporary low is formed at 1.3210, just ahead of 1.3203. Some more consolidations could be seen. But upside of recovery should be limited below 1.3471 resistance. Break of 1.3203 will finally confirm resumption of larger decline from 1.4376. In that case, GBP/USD should target 50% retracement of 1.1946 to 1.4376 at 1.3161 first, and 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 1.4182). 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 1.3617 resistance holds, even in case of strong rebound.
