Daily Pivots: (S1) 1.2207; (P) 1.2254; (R1) 1.2284; More

GBP/USD’s consolidation from 1.2213 temporary low continues today and intraday bias remains neutral first. While another recovery cannot be ruled out, we’d expect upside to be limited by 1.2382 support turned resistance to bring another fall. As noted before, consolidation pattern from 1.1946 should have completed with three waves to 1.2705 already. Below 1.2213 will turn bias to the downside for retesting 1.1946/86 support zone. Break of 1.1946 will confirm our bearish view and resume the larger down trend. Nonetheless, on the upside, above 1.2382 minor resistance will delay the bearish case and turn bias back to the upside for 1.2569.

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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