Daily Pivots: (S1) 1.2662; (P) 1.2699; (R1) 1.2733; More….
GBP/USD breached 1.2642 minor support but quickly recovered. Intraday bias stays neutral first. On the downside, firm break of 1.2642 will confirm completion of corrective rebound from 1.2506. Intraday bias will be turned back to the downside for retesting 1.2506 low. In case of another rise, upside should be limited by 38.2% retracement of 1.3381 to 1.2506 at 1.2840 to complete the corrective rise from 1.2506. However, sustained break of 1.2840 will bring stronger rise to 61.8% retracement at 1.3047 next.
In the bigger picture, down trend from 1.4376 (2018 high) is still in progress. 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.
