Daily Pivots: (S1) 1.4014; (P) 1.4046; (R1) 1.4074; More….
Intraday bias in GBP/USD stays neutral at this point. With 1.3982 minor support intact, further rise remains mildly in favor. On the upside, above 1.4243 will resume the rise from 1.3711 and target 1.4345 high first. Decisive break there will resume larger up trend and target 61.8% projection of 1.3038 to 1.4345 from 1.3711 at 1.4519 next. On the downside, however, firm break of 1.3982 will indicate completion of rebound from 1.3711. In that case, intraday bias will be turned back to the downside for retesting 1.3711.
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.
Hello sir,
i read your analysis
great works, well done.
but my question is that what is the difference between when TOP is formed on wave and when the wave is NEUTRAL.
thanks
A top is formed when a pair was in a prior upmove, and is turning into consolidation or reversing. Neutral bias usually means it’s in a corrective phase. Price actions inside a corrective pattern is relatively unpredictable. Even though, for example, a rebound is strong, it could end very soon. When the bias is neutral, range trading strategy is much better suited than trend following.