Daily Pivots: (S1) 1.3435; (P) 1.3490; (R1) 1.3556; More…..
GBP/USD’s rally and break of 1.3549 resistance confirms resumption of rise from 1.3038. And it’s likely that medium term rally from 1.1946 is resuming too. Intraday bias stays on the upside for 1.3651 resistance next. On the downside, below 1.3492 minor support will turn intraday bias neutral and bring consolidation before staging another rise.
In the bigger picture, while the medium term rebound from 1.1946 low was strong, it’s 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.
