GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.2080; (P) 1.2146; (R1) 1.2225; More

GBP/USD’s break of 1.2062 suggests that corrective rebound form 1.1759 has completed at 1.2292, after hitting 55 day EMA. Intraday bias is back on the downside for retesting 1.1759 low first. Firm break there will resume medium term down trend. For now, risk will stay on the downside as long as 1.2292 resistance holds, in case of recovery.

In the bigger picture, fall from 1.4248 (2018 high) could be a leg inside the pattern from 1.1409 (2020 low), or resuming the longer term down trend. Deeper decline is expected as long as 1.2666 resistance holds. Next target is 1.1409 low. However, firm break of 1.2666 will bring stronger rise back to 55 week EMA (now at 1.2957).

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