Daily Pivots: (S1) 1.2274; (P) 1.2372; (R1) 1.2538; More….
GBP/USD’s strong rebound and break of 1.2413 resistance suggests pull back from 1.2582 has completed at 1.2195 already. Intraday bias is back on the upside for 1.2582 resistance. Break will resume the whole rise from 1.1958 and target 100% projection of 1.1958 to 1.2582 from 1.2195 at 1.2819. For now, further rise is in favor as long as 1.2195 support holds, in case of retreat.
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 1.2727) 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.
