Daily Pivots: (S1) 1.3188; (P) 1.3232; (R1) 1.3257; More…
GBP/USD’s break of 1.3199 minor support argues that recovery from 1.3008 might have completed as a three-wave corrective move to 1.3274. That came after touching 55 D EMA (now at 1.3265). Intraday bias is back on the downside for retesting 1.3008 low. On the upside, however, sustained trading above 55 D EMA should confirm that fall from 1.3787 has completed. Further rise should then be seen to 1.3725/3787 resistance zone.
In the bigger picture, the break of 55 W EMA (now at 1.3184) is taken as the first sign that corrective rise from 1.0351 (2022 low) has completed. Decisive break of trend line support (now at 1.2760) will solidify this case and target 38.2% retracement of 1.0351 to 1.3787 at 1.2474 next. Meanwhile, in case of another rise, strong resistance should emerge below 1.4248 (2021 high) to cap upside to preserve the long term down trend.
. Intraday bias is back on the downside for retesting 1.3008 low. On the upside, however, sustained trading above 55 D EMA should confirm that fall from 1.3787 has completed. Further rise should then be seen to 1.3725/3787 resistance zone.){kind=link}