Daily Pivots: (S1) 1.3792; (P) 1.3841; (R1) 1.3894; More….
Intraday bias in GBP/USD remains neutral at this point. With 1.3929 minor resistance intact, deeper fall is still expected in the pair. Break of 1.3711 will resume the decline from 1.4345 through 1.3651 resistance turned support. At this point, 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. However, break of 1.3929 minor resistance will the first sign of near term reversal. Intraday bias will be turned back to the upside for 1.4144 resistance for confirmation.
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 1.4259) so far. Break of 1.3038 support, will suggest that rise from 1.1946 has completed and will turn outlook bearish for retesting this low.
