Daily Pivots: (S1) 1.2709; (P) 1.2738; (R1) 1.2768; More….
Intraday bias in GBP/USD remains mildly on the upside. Rebound from 1.2506 short term bottom could extend higher. But upside should be limited by 38.2% retracement of 1.3381 to 1.2506 at 1.2840 to limit upside. On the downside, break of 1.2642 minor support will turn intraday bias back to retest 1.2506 low. However, sustained break of 1.2840 will bring stronger rise to 61.8% retracement at 1.3047 next.
In the bigger picture, down trend from 1.4376 (2018 high) is still in progress. 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 strong rebound.
