Daily Pivots: (S1) 1.2644; (P) 1.2686; (R1) 1.2751; More…
GBP/USD recovered after hitting 1.2618 and intraday bias is turned neutral first. On the downside, break of 1.2618 and sustained trading below 1.2678 resistance turned support will argue that it’s already in a larger correction and target 1.2306 support next. Nevertheless, strong rebound from current level, followed by break of 1.2796 resistance, will retain near term bullishness and turn bias back to the upside.
In the bigger picture, the break of 55 D EMA (now at 1.2724) is raising the chance of medium term topping at 1.3141. This is also supported by bearish divergence condition in D MACD. Sustained trading below 1.2678 will indicate that fall from 1.3141 is at least correcting whole up trend from 1.0351, with risk of bearish reversal. Deeper fall would be seen back to 38.2% retracement of 1.0351 to 1.3141 at 1.2075.
