Daily Pivots: (S1) 1.2849; (P) 1.2879; (R1) 1.2926; More….
A temporary low is in place at 1.2832 in GBP/USD with current recovery. Intraday bias is turned neutral for consolidation first. Upside of consolidation should be limited by 1.3043 resistance to bring another decline. We’re holding on to the view that rebound from 1.2391 has completed at 1.3217 already, after rejection by 1.3174 key resistance. On the downside, below 1.2832 will extend the fall from 1.3217 to retest 1.2391 low. However, break of 1.3043 will turn focus back to 1.3217 high instead.
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.
