Daily Pivots: (S1) 1.2267; (P) 1.2306; (R1) 1.2337; More….
GBP/USD drops further to as low as 1.2224 so far today and intraday bias remains on the downside. Rebound from 1.1958 should have completed at 1.2582. Deeper decline should be seen o retest 1.1946/58 key support zone next. On the upside, above 1.2346 minor resistance will turn intraday bias neutral first. But risk will now stay on the downside as long as 1.2582 resistance holds.
In the bigger picture, we’d remain cautious on medium term bottoming around 1.1946 (2016 low). Sustained trading above 55 week EMA (now at 1.2724) will extend the consolidation pattern from 1.1946 with another rise to 1.4376 resistance. Nevertheless, decisive 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.
