Daily Pivots: (S1) 1.4255; (P) 1.4316; (R1) 1.4350; More

GBP/USD’s decline from 1.4376 accelerated to as low as 1.4172 today. But it’s holding above 1.4144 minor support so far. Intraday bias remains neutral first. Another rise is still mildly in favor as long as 1.4144 minor support holds. But break of 1.4376 is needed to confirm up trend resumption. In that case, GBP/USD would target 61.8% projection of 1.3038 to 1.4345 from 1.3711 at 1.4519. Before that, more consolidation would be seen. And on the downside, firm break of 1.4144 will be and early sign of medium term topping and turn focus back to 1.3965 support.

In the bigger picture, rise from 1.1946 (2016 low) is in progress and resuming. It is at least correcting the long term down trend 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. We’d continue to favor this medium term bullish view as long as 1.3711 support holds, even in case of deep pull back.

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