Daily Pivots: (S1) 1.2891; (P) 1.2929; (R1) 1.2998; More…
GBP/USD’s rebound from 1.2725 extends higher today but it’s staying below 1.3018 resistance. Intraday bias remains neutral and corrective fall from 1.3514 is still in favor to continue. Break of 1.2725 will extend the corrective fall from 1.3514 to 61.8% retracement of 1.1958 to 1.3514 at 1.2552. We’d look for strong support from there to bring rebound. Break of 1.3018 will indicate short term bottoming and turn bias back to the upside instead.
In the bigger picture, current decline from 1.3514 is seen as corrective the rally form 1.1958. Such rally is expected to resume latter to 1.4376 key resistance. Reactions from there would decide whether it’s in consolidation from 1.1946 (2016 low). Or, firm break of 1.4376 will indicate long term bullish reversal. However, sustained break of 1.2582 resistance turned support will dampen these views and bring retest of 1.1958 low instead.
