Daily Pivots: (S1) 1.3098; (P) 1.3122; (R1) 1.3148; More…
GBP/USD’s strong break of 1.3070 minor support indicates that corrective rise from 1.2956 has completed at 1.3212 already. Intraday bias is back on the downside for 1.2956 short term bottom first. Decisive break there will resume larger decline from 1.4376 for 1.2874 fibonacci level next. For now, the consolidation pattern from 1.2956 could still extend with another rebound through 1.3212. But even in that case, upside should be limited by 1.3362 resistance to bring larger decline resumption eventually.
In the bigger picture, whole medium term rebound from 1.1946 (2016 low) should have completed at 1.4376 already, after rejection from 55 month EMA (now at 1.4179). Fall from 1.4376 should extend to 61.8% retracement of 1.1946 (2016 low) to 1.4376 at 1.2874 next. Decisive break of 1.2874 will raise the chance of long term down trend resumption through 1.1946 low. On the upside, break of 1.3362 resistance is needed to be the first indication of medium term bottoming. Otherwise, outlook will remain bearish even in case of strong rebound.
