Daily Pivots: (S1) 1.2793; (P) 1.2852; (R1) 1.2884; More…
GBP/USD’s decline extends to as low as 1.2773 so far. 100% projection of 1.3362 to 1.2956 from 1.3212 at 1.2806 is already met. Intraday bias stays on the downside for 161.8% projection at 1.2555 next. On the upside, above 1.2854 minor resistance will turn bias neutral and bring consolidations. But upside should be limited by 1.2956 support turned resistance to bring fall resumption.
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 1.4141). Fall from 1.4376 has met 61.8% retracement of 1.1946 (2016 low) to 1.4376 at 1.2874 already. Decisive break of 1.2874 will raise the chance of long term down trend resumption through 1.1946 low. On the upside, break of 1.3212 resistance is needed to be the first indication of medium term bottoming. Otherwise, outlook will remain bearish even in case of strong rebound.
