Daily Pivots: (S1) 1.2660; (P) 1.2700; (R1) 1.2737; More…
GBP/USD continues to lose downside momentum as seen in mild bullish convergence condition in 4 hour MACD. But there is no clear sign of bottoming yet. As long as 1.2826 minor resistance holds, deeper fall is expected. Current decline is part of the down trend from 1.4376. Next target is 161.8% projection of 1.3362 to 1.2956 from 1.3212 at 1.2555. Though, break of 1.2826 will indicate short term bottoming and bring lengthier consolidation.
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). Current downside acceleration argues that it’s possibly resuming long term down trend. In any case, outlook will stay bearish as long as 1.3212 resistance holds. Retest of 1.1946 should be seen next.
