Daily Pivots: (S1) 1.2458; (P) 1.2609; (R1) 1.2710; More…
GBP/USD’s decline resumed after brief consolidation and reaches as low as 1.2479 so far. Intraday bias remains on the downside. Current fall is part of the down trend from 1.4376. Next target will be 61.8% projection of 1.4376 to 1.2661 from 1.3174 at 1.2114. On the upside, above 1.2638 minor resistance will turn intraday bias neutral and bring consolidation first, before staging another decline.
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. The structure and momentum of the fall from 1.4376 argues that it’s resuming long term down trend from 2.1161 (2007 high). And this will now remain the preferred case as long as 1.3174 structural resistance holds. GBP/USD should now target a test on 1.1946 first. Decisive break there will confirm our bearish view.
