Daily Pivots: (S1) 1.2395; (P) 1.2496; (R1) 1.2551; More…
Intraday bias in GBP/USD remains on the downside for the moment as fall from 1.2614 continues. Rebound from 1.2108 could have completed on bearish divergence condition in 4 hours MACD. Deeper decline would be seen back to 1.2108 support. Overall, price actions from 1.1946 are viewed as a consolidation pattern pattern. Break of 1.2108 support will be the first sign of larger down trend resumption and would target 1.1946 low for confirmation. On the upside, above 1.2614 will bring another rise. In that case, we’d expect upside to be limited by 1.2705/2774 to bring down trend resumption eventually.
In the bigger picture, fall from 1.7190 is seen as part of the down trend from 2.1161. There is no sign of medium term reversal yet. Sustained trading below 61.8% projection of 2.1161 to 1.3503 from 1.7190 at 1.2457 will target 100% projection at 0.9532. Overall, break of 1.3444 resistance is needed to confirm medium term bottoming. Otherwise, outlook will remain bearish.
