Daily Pivots: (S1) 1.2869; (P) 1.2958; (R1) 1.3029; More…
Despite jumping to 1.3047, GBP/USD quickly lost momentum and retreated. Intraday bias is turned neutral again. With 1.2844 support intact, further rise is still in favor in the pair. However, as price actions from 1.1946 are still viewed as a corrective pattern, we’d expect upside to be limited below 1.3444 to complete the correction. Meanwhile, break of 1.2844 will be a strong sign of near term reversal, on bearish divergence condition in 4 hour MACD. In such case intraday bias will be turned back to the downside for 1.2614 resistance turned support first.
In the bigger picture, fall from 1.7190 is seen as part of the down trend from 2.1161. There is no sign of medium term reversal yet. Sustained trading below 61.8% projection of 2.1161 to 1.3503 from 1.7190 at 1.2457 will target 100% projection at 0.9532. Overall, break of 1.3444 resistance is needed to confirm medium term bottoming. Otherwise, outlook will remain bearish.
