Daily Pivots: (S1) 1.2138; (P) 1.2195; (R1) 1.2309; More….
GBP/USD is staying below 1.2310 resistance despite strong rebound from 1.1958. Intraday bias remains neutral first. We’d stay cautious on bottoming around 1.1946. But break of 1.2309 is needed to confirm short term bottoming. Otherwise, further decline remains in favor. On the downside, decisive break of 1.1946 will target 61.8% projection of 1.2783 to 1.2014 from 1.2309 at 1.1834. However, sustained break of 1.2309 will turn near term outlook bullish for 1.2783 resistance next.
In the bigger picture, down trend from 1.4376 (2018 high) is extending towards 1.1946 low. We’d be cautious on bottoming there. But decisive break 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.
