Daily Pivots: (S1) 1.2888; (P) 1.2980; (R1) 1.3081; More…
GBP/USD dives to as low as 1.2750 so far today. The break of 1.2825 suggests resumption of fall from 1.3174. Intraday bias is back on the downside for retesting 1.2661/92 key support zone. Decisive break there will resume larger down trend from 1.4376. On the upside, break of 1.3071 will bring another rebound. But upside should be limited by t 1.3316 fibonacci level. Overall, price actions from 1.2661 are viewed as a consolidation pattern. Down trend from 1.4376 should resume after completion of the consolidation.
In the bigger picture, whole medium term rebound from 1.1946 (2016 low) should have completed at 1.4376 already, after rejection from 55 month EMA. The structure and momentum of the fall from 1.4376 argues that it’s resuming long term down trend. And this will be the preferred case as long as 38.2% retracement of 1.4376 to 1.2661 at 1.3316 holds. However, firm break of 1.3316 would bring stronger rebound to 61.8% retracement at 1.3721. And, the eventual depth of the fall from 1.4376, and the chance of hitting 1.1946 low, will depend on the strength of the interim corrective rebound from 1.2661.
