Daily Pivots: (S1) 1.3632; (P) 1.3662; (R1) 1.3717; More…
Intraday bias in GBP/USD is turned neutral with current recovery, but further decline is in favor with 1.3708 minor resistance intact. Below 1.3604 will target a test on 1.3410 low. Break there will resume larger decline from 1.4280. On the upside, though, break of 1.3708 minor resistance will turn bias back to the upside for 1.3833 resistance again. Decisive break of 1.3833 will re-affirm the case that corrective fall from 1.4248 has completed at 1.3410 already.
In the bigger picture, the structure of the fall from 1.4248 suggests that it’s a correction to the up trend from 1.1409 (2020 low) only. While deeper fall cannot be ruled out yet, downside should be contained by 38.2% retracement of 1.1409 to 1.4248 at 1.3164, at least on first attempt, to bring rebound. On the upside, firm break of 1.4376 key resistance (2018 high) will add to the case of long term bullish reversal. However, sustained trading below 1.3164 will revive some medium term bearishness and target 61.8% retracement at 1.2493.
