Daily Pivots: (S1) 1.2897; (P) 1.2857; (R1) 1.2949; More….
Focus is now on 1.2958 minor resistance in GBP/USD with today’s rebound. Firm break there will indicate completion of decline from 1.3217. Intraday bias would then be turned back to the upside for 1.3174/3217 key resistance zone. Nevertheless, on the downside, break of 1.2773 will resume the fall from 1.3217 to retest 1.2391 low.
In the bigger picture, the rejection by 1.3174 key resistance revived the original view on GBP/USD. That is, decline from 1.4376 is possibly resuming long term down trend from 2.1161 (2007 high). Firm break of 1.2391 will solidify this bearish case and target 1.1946 (2016 low). However, decisive break of 1.3174 will invalidate this bearish case again and turn outlook bullish.