Daily Pivots: (S1) 1.3339; (P) 1.3386; (R1) 1.3413; More…
GBP/USD’s decline from 1.4248 is still in progress and intraday bias remains on the downside. Next target is 1.3164 fibonacci level. On the upside, break of 1.3606 resistance is needed to indicate short term bottoming. Otherwise, outlook will stay bearish in case of recovery.
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.
