Daily Pivots: (S1) 1.2455; (P) 1.2507; (R1) 1.2577; More….

GBP/USD’s rally resumes after brief consolidations and hits as high as 1.2582 so far. Intraday bias is back on the upside. With 38.2% retracement of 1.3381 to 1.1958 at 1.2502 firmly taken out, next target is 61.8% retracement at 1.2837. On the downside, below 1.2438 minor support will turn intraday bias neutral and bring consolidations first, before staging another rally.

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In the bigger picture, we’d remain cautious on medium term bottoming around 1.1946 (2016 low). Sustained trading above 55 week EMA (now at 1.2769) will extend the consolidation pattern from 1.1946 with another rise to 1.4376 resistance. Nevertheless, decisive 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.

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