Daily Pivots: (S1) 1.2910; (P) 1.2944; (R1) 1.2964; More….

GBP/USD’s decline from 1.3217 is still in progress and intraday bias stays on the downside for 1.2814 resistance turned support. As noted before, rebound from 1.2391 has completed at 1.3217, after rejection by 1.3174 key resistance. Firm break of 1.2814 will bring retest of 1.2391 low. On the upside, above 1.2997 minor resistance will turn intraday bias neutral first. But break of 1.3217 resistance is needed to confirm resumption of the rebound. Otherwise, risk will now stay on the downside in case of recovery.

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In the bigger picture, the rejection by 1.3174 key resistance revived the original view on GBP/USD. That is, decline from 1.4376 is possibly resuming long term down trend from 2.1161 (2007 high). Firm break of 1.2391 will solidify this bearish case and target 1.1946 (2016 low). However, decisive break of 1.3174 will invalidate this bearish case again and turn outlook bullish.

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