Daily Pivots: (S1) 1.2615; (P) 1.2649; (R1) 1.2694; More….
A temporary low is in place at 1.2605 with today’s recovery. Intraday bias in GBP/USD is turned neutral for some consolidations. Upside should be limited by 1.2865 support turned resistance to bring fall resumption. On the downside, break of 1.2605 will extend the fall from 1.3381 to 1.2391 low. Larger decline from 1.4376 might be resuming. Break of 1.2391 will target 61.8% projection of 1.4376 to 1.2391 from 1.3381 at 1.2154 next.
In the bigger picture, current development suggests that medium term decline from 1.4376 (2018 high) is not completed, and is possibly ready to resume. Decisive break of 1.2391 would target a test on 1.1946 long term bottom (2016 low). For now, we don’t expect a firm break there yet. Hence focus will be on bottoming signal as it approaches 1.1946. In any case, medium term outlook will stay bearish as long as 1.3381 resistance holds, in case of rebound.
