Daily Pivots: (S1) 1.3924; (P) 1.3963; (R1) 1.4001; More….
GBP/USD drops notably after failing to sustain above 4 hour 55 EMA (now at 1.3978), but stays above 1.3859 minor support. Intraday bias remains neutral first. On the downside, break of 1.3859 will resume the fall from 1.4248, as the third leg of the consolidation pattern from 1.4240, to 1.3668 support and possibly below. On the upside, sustained break of the 4 hour 55 EMA will turn bias back to the upside for retesting 1.4240/8 resistance zone instead.
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.
