Daily Pivots: (S1) 1.3398; (P) 1.3445; (R1) 1.3478; More…
GBP/USD’s fall resumed after brief consolidation and reaches as low as 1.3374 so far. Intraday bias is back on the downside for 50% retracement of 1.1946 to 1.4376 at 1.3161. On the upside, above 1.3490 minor resistance will turn intraday bias neutral and bring consolidation first, before staging another decline.
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 1.4249). 38.2% retracement of 1.1936 (2016 low) to 1.4376 at 1.3448 should now be firmly taken out. Next target will be 61.8% retracement at 1.2874 and below. Outlook will stay bearish as long as 55 day EMA (now at 1.3761) holds, even in case of strong rebound.
