Daily Pivots: (S1) 1.2353; (P) 1.2406; (R1) 1.2437; More

GBP/USD’s break of 1.2382 temporary low suggests fall resumption and intraday bias is back on the downside. Sustained trading below 1.2391 key support will extend larger down trend to 61.8% projection of 1.4376 to 1.2391 from 1.3381 at 1.2154 next. In any case, outlook will remain bearish as long as 1.2522 resistance holds, in case of recovery.

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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.

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