Daily Pivots: (S1) 1.1857; (P) 1.1898; (R1) 1.1964; More…
GBP/USD’s break of 1.1914 support turned resistance indicates short term bottoming at 1.1801, after breaching 1.1840 support. Intraday bias is back on the upside for 55 day EMA (now at 1.2052). Sustained break there will bring retest of 1.2446 high. On the downside, however, break of 1.1801 will resume the decline to 38.2% retracement of 1.0351 to 1.2446 at 1.1646.
In the bigger picture, the failure to sustain below 1.1840 support argues that price actions from 1.2445 are merely a consolidation pattern. That is rise from 1.0351 is not over yet. Break of 1.2446 will target 61.8% retracement of 1.4248 (2021 high) to 1.0351 at 1.2759. However, decisive break of 1.1840 will bring deeper correction to 38.2% retracement of 1.0351 to 1.2446 at 1.1646, or even further to 61.8% retracement at 1.1151.
