Daily Pivots: (S1) 1.3246; (P) 1.3288; (R1) 1.3363; More….
GBP/USD’s rebound from 1.3038 extend highs today with focus back on 1.3337 resistance. Firm break there will argue that whole decline from 1.3651 is completed. And further rise should then be seen to 61.8% retracement of 1.3651 to 1.3026 at 1.3412 first. Sustained break there will target a test on 1.3651. On the downside, though, break of 1.3212 minor support will turn bias back to the downside for retesting 1.3026 instead.
In the bigger picture, as noted before, GBP/USD hit strong resistance from the long term falling trend line. Current development is starting to favor that corrective rebound from 1.1946 low has completed at 1.3651. Decisive break of 1.2773 will confirm this bearish case and target a test on 1.1946 low next, with prospect of resuming the low term down trend. Nonetheless, break of 1.3320 resistance will restore the rise from 1.1946 for 38.2% retracement of 2.1161 (2007 high) to 1.1946 (2016 low) at 1.5466.
