Daily Pivots: (S1) 1.2802; (P) 1.2875; (R1) 1.2922; More…
Intraday bias in GBP/USD is turned neutral as it recovers after hitting 1.2825. Intraday bias is turned neutral first. On the downside, below 1.2825 will resume the fall from 1.3174 to 1.2661/92 key support zone. Decisive break there will resume larger down trend from 1.4376. On the upside, above 1.3174 will extend the rebound from 1.2692. But after all, price actions from 1.2661 are seen as a consolidation pattern and larger down trend is expected to resume sooner or later.
In the bigger picture, whole medium term rebound from 1.1946 (2016 low) should have completed at 1.4376 already, after rejection from 55 month EMA. The structure and momentum of the fall from 1.4376 argues that it’s resuming long term down trend. And this will be the preferred case as long as 38.2% retracement of 1.4376 to 1.2661 at 1.3316 holds. However, firm break of 1.3316 would bring stronger rebound to 61.8% retracement at 1.3721. And, the eventual depth of the fall from 1.4376, and the chance of hitting 1.1946 low, will depend on the strength of the interim corrective rebound from 1.2661.
