Daily Pivots: (S1) 1.2104; (P) 1.2166; (R1) 1.2212; More…
A temporary low is in place at 1.2119 in GBP/USD and intraday bias is turned neutral first. Stronger recovery might be seen. But upside should be limited by 1.2383 support turned resistance to bring fall resumption. On the downside, break of 1.2119 will target 1.1946 low next. Break will target 100% projection of 1.4376 to 1.2391 from 1.3381 at 1.1396.
In the bigger picture, down trend from 1.4376 (2018 high) is still in progress and is resuming. Such decline should target a test on 1.1946 long term bottom (2016 low) next. For now, we don’t expect a firm break there yet. Hence, focus will be on bottoming signal as it approaches 1.1946. However, firm break of 1.1946 will resume down trend from 2.1161 (2007 high) to 61.8% projection of 1.7190 to 1.1946 from 1.4376 at 1.1135. In any case, medium term outlook will stay bearish as long as 1.3381 resistance holds, in case of strong rebound.
