Daily Pivots: (S1) 1.3964; (P) 1.4015; (R1) 1.4048; More….
GBP/USD surges to as high as 1.4215 but retreats mildly since then. With 1.3982 minor support intact, intraday bias stays on the upside for further rally. Current development is consistent with our bullish view that correction from 1.4345 has completed at 1.3711 already. And larger up trend could be ready to resume. Further rise should be seen to retest 1.4345 high first. Break will target 61.8% projection of 1.3038 to 1.4345 from 1.3711 at 1.4519 next. On the downside, break of 1.3982 support is needed to signal completion of the rise from 1.3711. Otherwise, outlook will remain cautiously bullish in case of retreat.
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.
