Daily Pivots: (S1) 1.3191; (P) 1.3221; (R1) 1.3252; More

GBP/USD drops sharply after hitting 1.3267 but it’s staying above 1.3096 minor support. Intraday bias is neutral first. Overall, price actions from 1.1946 are viewed as a corrective pattern. Considering bearish divergence condition in 4 hour MACD, break of .3096 will be the first sign of reversal. Intraday bias will be turned back to 1.2932 support first in that case. Break of 1.3267 will extend the rise. But, we’ll look for topping signal again around 1.3444 key resistance.

In the bigger picture, overall, price actions from 1.1946 medium term low are seen as a corrective pattern that is still in progress. While further upside is expected, larger outlook remains bearish as long as 1.3444 key resistance holds. Down trend from 1.7190 (2014 high) is expected to resume later after the correction completes. And break of 1.2588 will indicate that such down trend is resuming.

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GBP/USD 4 Hours Chart

GBP/USD Daily Chart

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