Daily Pivots: (S1) 1.3228; (P) 1.3260; (R1) 1.3316; More…
GBP/USD’s rebound from 1.3048 short term bottom continues today and reaches as high as 1.3362 so far. Intraday bias stays on the upside for 1.3471 resistance. At this point, we’d strong resistance from 1.3471 to limit upside to finish the corrective rebound. On the downside, below 1.3200 minor support will turn bias to the downside for retesting 1.3048 low.
In the bigger picture, whole medium term rebound from 1.1936 (2016 low) should have completed at 1.4376 already, after rejection from 55 month EMA (now at 1.4179). Fall from 1.4376 should extend to 61.8% retracement of 1.1936 (2016 low) to 1.4376 at 1.2874 next. We’ll pay attention to the reaction from there to asses the chance of long term down trend resumption. On the upside, sustained break of 38.2% retracement of 1.4376 to 1.3048 at 1.3555 is needed to indicate medium term bottoming. Otherwise, outlook will remain bearish in case of strong rebound.
