Daily Pivots: (S1) 1.3037; (P) 1.3080; (R1) 1.3161; More…
GBP/USD’s rise resumed by taking out 1.3125 and intraday bias is back on the upside. At this point, we’ll stay cautious on strong resistance from 61.8% projection of 1.2108 to 1.3047 from 1.2588 at 1.3168 to limit upside. However, sustained break there could extend recent rebound towards 1.3444 key resistance. But still, price actions from 1.1946 is seen as a corrective pattern and GBP/USD should feel heavy approaching 1.3444. On the downside, break of 1.2932 support will be the first sign of reversal and will turn bias to the downside to target 1.2588 key support next.
In the bigger picture, overall, price actions from 1.1946 medium term low are seen as a corrective pattern that is still in progress. While further upside is expected, overall outlook remains bearish as long as 1.3444 key resistance holds. Larger down trend from 1.7190 is expected to resume later after the correction completes. And break of 1.2588 will indicate that such down trend is resuming.
