Daily Pivots: (S1) 1.2508; (P) 1.2557; (R1) 1.2582; More….
GBP/USD drops to as low as 1.2511 and break of 1.2559 confirms resumption of fall from 1.3381. Intraday bias stays on the downside for 1.2391 low. Decisive break there will confirm resumption of larger down trend. On the upside, above 1.2605 minor resistance will turn intraday bias neutral first. But recovery should be limited below 1.2763 resistance to bring fall resumption.
In the bigger picture, medium term decline from 1.4376 (2018 high) 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 strong rebound.
