Daily Pivots: (S1) 1.2481; (P) 1.2593; (R1) 1.2763; More….
A temporary top is formed a 1.2707 in GBP/USD with today’s retreat. Intraday bias is turned neutral for some consolidations. But downside of retreat should be contained well above 1.2195 support to bring another rally. on the upside, above 1.2707 will target 100% projection of 1.1958 to 1.2582 from 1.2195 at 1.2819. Break will target 161.8% projection at 1.3205.
In the bigger picture, current development affirms the case of medium term bottoming at 1.1958, ahead of 1.1946 (2016 low). At this point, rise from 1.1958 is seen as the third leg of consolidation from 1.1946. Further rise would be seen back towards 1.4376 resistance. For now, this will remain the favored case as long as 1.2195 support holds.
