Daily Pivots: (S1) 1.3444; (P) 1.3477; (R1) 1.3528; More…
Intraday bias in GBP/USD remains mildly on the downside for 1.3410 low. Firm break there will confirm resumption of larger decline from 1.4248 and target 1.3164 fibonacci level next. On the upside, above 1.3604 minor resistance will mix up the near term outlook and turn intraday bias neutral first.
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.
