GBP/USD recovered after drawing support from 1.3669 last week. Initial bias remains neutral this week first. Another fall will remain in favor as long as 1.3917 resistance holds. Below 1.3668 will extend the fall from 1.4240 to 1.3482 key resistance turned support. On the upside, firm break of 1.3917 will suggest that the correction has completed, and bring stronger rise to 1.4000 resistance first.
In the bigger picture, as long as 1.3482 resistance turned support holds, up trend from 1.1409 should still continue. Decisive break of 1.4376 resistance will carry larger bullish implications and target 38.2% retracement of 2.1161 (2007 high) to 1.1409 (2020 low) at 1.5134. However, firm break of 1.3482 support will argue that the rise from 1.1409 has completed and bring deeper fall to 1.2675 support and below.
In the longer term picture, a long term bottom should be in place at 1.1409, on bullish convergence condition in monthly MACD. Rise from there would target 38.2% retracement of 2.1161 to 1.1409 at 1.5134. Reaction from there would reveal whether rise from 1.1409 is just a correction, or developing into a long term up trend.
