Daily Pivots: (S1) 1.3532; (P) 1.3580; (R1) 1.3624; More…
Even though GBP/USD continues to lose downside momentum as seen in 4 hour MACD, there is no sign of rebound yet. intraday bias remains on the downside 1.3448 fibonacci level next. On the upside, above 1.3628 minor resistance will argue that a short term bottom is formed. In that case, stronger recovery could be seen back to 4 hour 55 EMA (now at 1.3770) or above before staging another fall.
In the bigger picture, current development suggests that whole medium term rebound from 1.1936 (2016 low) has completed at 1.4376 already, with trend line broken, on bearish divergence condition in daily MACD, after rejection from 55 month EMA (now at 1.4248). Deeper decline should be seen to 38.2% retracement of 1.1936 (2016 low) to 1.4376 at 1.3448 first. Break will target 61.8% retracement at 1.2874 and below. Outlook will stay bearish as long as 55 day EMA (now at 1.3955) holds, even in case of strong rebound.
