Daily Pivots: (S1) 1.3523; (P) 1.3566; (R1) 1.3598; More

GBP/USD’s steep decline and breach of 1.3459 support indicate that consolidation has completed at 1.3607, after rejection by 4 hour 55 EMA. Intraday bias is back on the downside to extend the decline from 1.4376. Sustained trading below 1.3448 fibonacci level will pave the way to next one at 1.2874. On the upside, break of 1.3607 resistance is needed to indicate short term bottoming. Otherwise, outlook will stay bearish in case of recovery.

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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). 38.2% retracement of 1.1936 (2016 low) to 1.4376 at 1.3448 was almost met. Break there will target 61.8% retracement at 1.2874 and below. Outlook will stay bearish as long as 55 day EMA (now at 1.3861) holds, even in case of strong rebound.

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