Daily Pivots: (S1) 1.2703; (P) 1.2736; (R1) 1.2757; More….
Despite diminishing downside momentum, there is no sign of bottoming in GBP/USD yet. Intraday bias remains on the downside. Current fall from 1.3381 is in progress for retesting 1.2391 low. Larger decline from 1.4376 might be resuming. Break of 1.2391 will target 61.8% projection of 1.4376 to 1.2391 from 1.3381 at 1.2154 next. On the upside, above 1.2757 minor resistance will turn intraday bias neutral for consolidation first before staging another decline.
In the bigger picture, current development suggests that medium term decline from 1.4376 (2018 high) is not completed, and is possibly ready to resume. Decisive break of 1.2391 would target a test on 1.1946 long term bottom (2016 low). For now, we don’t expect a firm break there yet. Hence focus will be on bottoming signal as it approaches 1.1946. In any case, medium term outlook will stay bearish as long as 1.3381 resistance holds, in case of rebound.