Daily Pivots: (S1) 1.3841; (P) 1.3877; (R1) 1.3942; More…
Intraday bias in GBP/USD is turned neutral a it retreats notably after hitting 1.3917. At this point, we’re still favoring the case the corrective fall from 1.4240 has completed at 1.3669. Break of 1.3917 will target 1.4000 resistance first. Decisive break there should confirm this bullish case and bring retest of 1.4240 high. However, break of 1.3808 will dampen this view, and turn bias back to the downside for 38.2% retracement of 1.2675 to 1.4240 at 1.3642.
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. Decisive break there will carry larger bullish implications and target 38.2% retracement of 2.1161 (2007 high) to 1.1409 (2020 low) at 1.5134. On the downside, break of 1.3482 resistance turned support is needed to be first indication of completion of the rise. Otherwise, outlook will stay cautiously bullish even in case of deep pullback.
