Daily Pivots: (S1) 1.3613; (P) 1.3648; (R1) 1.3678; More….
GBP/USD’s break of 1.3608 minor support suggests that deeper correction is underway. Intraday bias is turned back to the downside for channel support (now at 1.3481). Strong support is expected there to contain downside to bring up trend resumption. Above 1.3682 minor resistance will turn bias to the upside to bring retest of 1.3758 resistance. However, sustained break of the channel support will argue that it’s already correcting whole up trend 1.1409. Near term outlook will be turned bearish for deeper fall.
In the bigger picture, rise from 1.1409 medium term bottom is in progress. Further rally would be seen to 1.4376 resistance and above. On the downside, break of 1.2675 support is needed to indicate completion of the rise. Otherwise, outlook will stay cautiously bullish even in case of deep pullback.
