Daily Pivots: (S1) 1.3160; (P) 1.3225; (R1) 1.3329; More….
GBP/USD’s rebound from 1.3026 extends to as high as 1.3323 so far. The break of 1.3291 resistance argues that pull back from 1.3651 is completed at 1.3026. Intraday bias is turned back to the upside for retesting 1.3651 high. Decisive break there will resume whole medium term rally from 1.1946 and target 1.3835 key resistance next. On the downside, below 1.3120 minor support will resume the fall from 1.3651 through 1.3026 instead.
In the bigger picture, while the medium term rebound from 1.1946 was strong, GBP/USD hit strong resistance from the long term falling trend line. Outlook is turned a bit mixed and we’ll turn neutral first. On the downside, decisive break of 1.2773 key support will argue that rebound from 1.1946 has completed. The corrective structure of rise from 1.1946 to 1.3651 will in turn suggest that long term down trend is now completed. Break of 1.1946 low should then be seen. On the upside, break of 1.3835 support turned resistance will revive the case of trend reversal and target 38.2% retracement of 2.1161 (2007 high) to 1.1946 (2016 low) at 1.5466 .