Daily Pivots: (S1) 1.2104; (P) 1.2166; (R1) 1.2212; More…
GBP/USD’s decline is still in progress and intraday bias remains on the downside for retesting 1.1946 low. We’d be cautious on bottoming there. But break will target 100% projection of 1.4376 to 1.2391 from 1.3381 at 1.1396. On the upside, above 1.2235 minor resistance will turn intraday bias neutral and bring consolidation. But recovery should be limited by 1.2383 support turned resistance to bring fall resumption.
In the bigger picture, down trend from 1.4376 (2018 high) is still in progress and is resuming. Such decline should target a test on 1.1946 long term bottom (2016 low) next. For now, we don’t expect a firm break there yet. Hence, focus will be on bottoming signal as it approaches 1.1946. However, firm break of 1.1946 will resume down trend from 2.1161 (2007 high) to 61.8% projection of 1.7190 to 1.1946 from 1.4376 at 1.1135. In any case, medium term outlook will stay bearish as long as 1.3381 resistance holds, in case of strong rebound.
