Daily Pivots: (S1) 1.2058; (P) 1.2148; (R1) 1.2194; More….
GBP/USD’s recovery from 1.2065 continues today and is now pressing 4 hour 55 EMA . Though, as it’s staying below 1.2467 minor resistance, intraday bias remains neutral first. We’ll holding on to the view that corrective rise from 1.1409 should have completed. On the downside, below 1.2065 will target a test on 1.1409 low. However, on the upside, break of 1.2467 will turn bias to the upside for 1.2647 resistance.
In the bigger picture, while the rebound from 1.1409 is strong, there is no indication of trend reversal yet. Down trend from 2.1161 (2007 high) should still resume sooner or later. Next medium term target will be 61.8% projection of 1.7190 to 1.1946 from 1.3514 at 1.0273. In any case, outlook will remain bearish as long as 1.3514 resistance holds, in case of strong rebound.
