Daily Pivots: (S1) 1.3479; (P) 1.3517; (R1) 1.3576; More…..
GBP/USD dipped to 1.3457 but recovered quickly again. The price actions from 1.3612 are now clearly corrective. Hence even in case of another fall, downside should be contained well above 1.3300 support to bring rise resumption. And, break of 1.3612/51 resistance zone will now target 1.3835 key resistance level next.
In the bigger picture, the break of long term trend line resistance from 1.7190 (2014 high) is seen as a sign of long term reversal. However, rise from 1.1946 (2016 low) is not impulsive looking. And the pair is limited below 1.3835 key resistance. Hence, we won’t turn bullish yet and would continue to monitor the development. On the downside, break of 1.3038 support will now indicate that rebound from 1.1946 has completed and turn outlook bearish. Meanwhile, 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.
