Daily Pivots: (S1) 1.2608; (P) 1.2689; (R1) 1.2739; More…
At this point, intraday bias in GBP/USD stays on the downside for deeper decline. As noted before, we favor the case that consolidation pattern from 1.1946 has completed at 1.3047 already. Decisive break of 1.2614 resistance turned support would confirm our bearish view and target a test on 1.1946 low next. On the upside, above 1.2768 will bring turn bias neutral and bring recovery. But outlook will remain bearish as long as 1.2977 resistance holds.
In the bigger picture, fall from 1.7190 is seen as part of the down trend from 2.1161. Price actions from 1.1946 medium term low are seen as a consolidation pattern, which could have completed after hitting 55 week EMA. Break of 1.1946 low will target 61.8% projection of 1.5016 to 1.1946 from 1.3047 at 1.1150 next. In case the consolidation from 1.1946 extends, outlook will stay remain bearish as long as 1.3444 resistance holds.
