Daily Pivots: (S1) 1.2387; (P) 1.2435; (R1) 1.2493; More…
GBP/USD’s corrective rebound from 1.2099 extended slightly higher, but stays below 38.2% retracement of 1.3433 to 1.2099 at 1.2609. Intraday bias remains neutral first, and larger fall from 1.3433 is still expected to continue. Break of 1.2331 minor support will turn bias to the downside for 1.2248 support. Firm break there will argue that the correction has completed and bring retest of 1.2099 low. However, decisive break of 1.2609 will raise the chance of near term reversal, and target 61.8% retracement at 1.2923.
In the bigger picture, rise from 1.0351 (2022 low) should have already completed at 1.3433 (2024 high), and the trend has reversed. Further fall is now expected as long as 1.2810 resistance holds. Deeper decline should be seen to 61.8% retracement of 1.0351 to 1.3433 at 1.1528, even as a corrective move. However, firm break of 1.2810 will dampen this bearish view and bring retest of 1.3433 high instead.
