Daily Pivots: (S1) 1.3403; (P) 1.3430; (R1) 1.3468; More…..
GBP/USD rises strongly today and the near term falling channel from 1.3549 is firmly taken out. Correction from 1.3549 should have completed at 1.3300 already. Intraday bias is now on the upside for 1.3549 first. Break will resume whole rally from 1.3038 for 1.3651 high next. on the downside, below 1.3424 minor support will delay the bullish case and bring more consolidation first.
In the bigger picture, while the medium term rebound from 1.1946 low was strong, it’s limited below 1.3835 key support turned resistance. As long as 1.3835 holds, we’d view such rebound as a correction. That is, we’d expect another leg in the long term down trend through 1.1946 low. However, sustained break of 1.3835 should at least send GBP/USD to 38.2% retracement of 2.1161 (2007 high) to 1.1946 (2016 low) at 1.5466.
