Daily Pivots: (S1) 1.3381; (P) 1.3429; (R1) 1.3489; More….
GBP/USD’s pull back from 1.3549 extends to as low as 1.3357 so far today. But the pair is still staging above 1.3337 resistance turned support. Intraday bias remains neutral and another rise is still expected. Break of 1.3549 will target 1.3651 high and above. However, decisive break of 1.3337 will argue that rise from 1.3038 has completed and turn bias back to the downside for this support.
In the bigger picture, while the medium term rebound from 1.1946 low is strong, it’s still limited below 1.3835 key support turned resistance. As long as 1.3835 holds, we’d view such rebound as a correction. That is, we’d expect another leg in the long term down trend through 1.1946 low. However, sustained break of 1.3835 should at least send GBP/USD to 38.2% retracement of 2.1161 (2007 high) to 1.1946 (2016 low) at 1.5466.