Daily Pivots: (S1) 1.2445; (P) 1.2510; (R1) 1.2544; More…
GBP/USD’s fall from 1.3433 resumed by breaking through 1.2352 today and intraday bias is back on the downside. Deeper decline would be seen to 1.2256/98 cluster support zone. Strong support could be seen there to bring sustainable rebound. But break of 1.2575 resistance is needed to signal short term bottoming. Otherwise, risk will stay on the downside. Decisive break of 1.2256/98 will carry larger bearish implications.
In the bigger picture, price actions from 1.3433 medium term are seen as correcting whole up trend from 1.0351 (2022 low). Deeper decline could be seen to 38.2% retracement of 1.0351 to 1.3433 at 1.2256, which is close to 1.2298 structural support. But strong support is expected there to bring rebound to extend the corrective pattern. However, firm break of 1.2256 will argue that the trend has reversed and target 61.8% retracement at 1.1528.
