Daily Pivots: (S1) 1.1990; (P) 1.2037; (R1) 1.2089; More…
GBP/USD recovers after hitting as low as 1.1986. But near term outlook stays cautiously bearish as long as 1.2316 resistance holds. Decisive break of 1.1946 low will confirm larger down trend resumption. Next near term target is 61.8% projection of 1.3444 to 1.1946 from 1.2774 at 1.1848 and then 100% projection at 1.1276. However, above 1.2316 will turn focus back to 1.2432 resistance. Break there will invalidate our bearish view and extend the consolidation from 1.1946 with another rise before down trend resumption.
In the bigger picture, fall from 1.7190 is seen as part of the down trend from 2.1161. There is no sign of medium term bottoming yet. Sustained trading below 61.8% projection of 2.1161 to 1.3503 from 1.7190 at 1.2457 will target 100% projection at 0.9532. Overall, break of 1.3444 resistance is needed to confirm medium term bottoming. Otherwise, outlook will remain bearish.
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