Daily Pivots: (S1) 1.2165; (P) 1.2295; (R1) 1.2388; More…
GBP/USD is losing some downside momentum as seen in 4 hour MACD. But there is no sign of bottoming yet. Intraday bias remains on the downside. Current decline from 1.3514 should target a test on 1.1958 low. On the upside, above 1.2421 minor resistance will turn intraday bias neutral first. But further fall will be expected as long as 1.2725 support turned resistance holds.
In the bigger picture, current development suggests that price actions from 1.1946 (2016 low) are merely a consolidation pattern, with the third leg completed at 1.3514. Rejection by 55 month EMA also solidify long term bearishness. Focus is back on 1.19146 low. Decisive break there will resume larger down trend form 2.1161 (2007 high). This will remain the favored case as long as 1.3514 resistance holds.
