Daily Pivots: (S1) 1.3704; (P) 1.3810; (R1) 1.3864; More….
GBP/USD’s sharp fall and break of 1.3764 suggests resumption of decline from 1.4345. Intraday bias is back on the downside for 1.3651 resistance turned support and below. At this point, such fall is viewed as a corrective move./ Hence, we’ll look for strong support from 38.2% retracement of 1.1946 to 1.4345 at 1.3429 to contain downside and bring rebound. Nonetheless, break of 1.4144 resistance is needed to confirm completion of the decline. Otherwise, near term outlook will remain mildly bearish even in case of recovery.
In the bigger picture, as long as 1.3038 support holds, medium term outlook in GBP/USD will remains bullish. Rise from 1.1946 is at least correcting the long term down from 2007 high at 2.1161. Further rally would be seen back to 38.2% retracement of 2.1161 (2007 high) to 1.1946 (2016 low) at 1.5466. However, GBP/USD fails to sustain above 55 month EMA (now at 1.4279) so far. Break of 1.3038 support, will suggests that rise from 1.1946 has completed and will turn outlook bearish for retesting this low.
