Daily Pivots: (S1) 1.2539; (P) 1.2647; (R1) 1.2708; More….
GBP/USD’s break of 1.2618 minor support suggests short term topping at 1.2813, just ahead of 61.8% projection of 1.1409 to 1.2647 from 1.2065 at 1.2830. Intraday bias is turned to the downside for 55 day EMA (now at 1.2460). Sustained break there will argue that whole rebound from 1.1409 has completed. In this case, deeper decline would be seen to 1.2065 support for confirmation. On the upside, firm break of 1.2813 is needed to signal rally resumption. Otherwise, risk will now stay mildly on the downside in case of recovery.
In the bigger picture, while the rebound from 1.1409 is strong, there is not enough evidence trend reversal yet. Down trend from 2.1161 (2007 high) should still resume sooner or later. However, decisive break of 1.3514 should at least confirm medium term bottoming and turn outlook bullish for 1.4376 resistance first.
