Daily Pivots: (S1) 1.3066; (P) 1.3158; (R1) 1.3208; More….
GBP/USD’s decline from 1.3651 is still in progress and dives to as low as 1.3059 so far. 61.8% retracement of 1.2773 to 1.3651 at 1.3108 is taken out but no sign of bottoming is seen. Intraday bias stays on the downside for 1.2773 support next. On the upside, break of 1.3290 resistance is needed to confirm short term bottoming. Otherwise, outlook will remain mildly bearish in case of recovery.
In the bigger picture, current development argues that the long term trend in GBP/USD has reversed. That is, a key bottom was formed back in 1.1946 on bullish convergence condition in monthly MACD. Current rise from 1.1946 will target 38.2% retracement of 2.1161 (2007 high) to 1.1946 (2016 low) at 1.5466 next. In any case, medium term outlook will now stay bullish as long as 1.2773 support holds.
