Daily Pivots: (S1) 1.3588; (P) 1.3639; (R1) 1.3668; More…
GBP/USD’s break of 1.3691 minor resistance argues that fall form 1.3912 might have completed at 1.3608, after defending 1.3570/3601 support zone. Intraday bias is back on the upside for 1.3912 resistance. On the downside, however, break of 1.3570 will target 1.3482 key support level. Sustained break there will carry larger bearish implication and target 1.3163 fibonacci level.
In the bigger picture, as long as 1.3482 resistance turned support holds, we’d still treat price actions from 1.4248 as a corrective move. That is, up trend from 1.1409 (2020 low) is in favor to resume. Decisive break of 1.4376 key resistance (2018 high) would indeed carry long term bullish implications. However, sustained break of 1.3482 will at least bring deeper fall to 38.2% retracement of 1.1409 to 1.4248 at 1.3164, or even further to 61.8% retracement at 1.2493.
