Daily Pivots: (S1) 1.2608; (P) 1.2689; (R1) 1.2739; More…
A temporary low is in place at 1.2633 and intraday bias in GBP/USD is turned neutral for consolidation. While stronger recovery might be seen, upside should be limited below 1.2977 resistance to bring fall resumption. At this point, we’re favoring 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. However, break of 1.2977 will dampen our view and turn bias back to the upside for 1.3047 and above.
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.
