Daily Pivots: (S1) 1.3494; (P) 1.3550; (R1) 1.3602; More…
Intraday bias in GBP/USD remains neutral as consolidation from 1.3485 low is still extending. In case of another recovery, upside should be limited by 38.2% retracement of 1.4376 to 1.3485 at 1.3825 to bring fall resumption. Break of 1.3485 will resume the fall from 1.4376. Further break of 1.3448 fibonacci level will target 1.2874 and below.
In the bigger picture, current development suggests that whole medium term rebound from 1.1936 (2016 low) has completed at 1.4376 already, with trend line broken, on bearish divergence condition in daily MACD, after rejection from 55 month EMA (now at 1.4223). Deeper decline should be seen to 38.2% retracement of 1.1936 (2016 low) to 1.4376 at 1.3448 first. Break will target 61.8% retracement at 1.2874 and below. Outlook will stay bearish as long as 55 day EMA (now at 1.3925) holds, even in case of strong rebound.
