Daily Pivots: (S1) 1.3076; (P) 1.3172; (R1) 1.3231; More…
GBP/USD’s fall from 1.3267 resumes in early US session and breaks 1.3096 minor support. This is taken as the first sign of near term reversal, with bearish divergence condition in 4 hour MACD. Price actions from 1.1946 are viewed as a corrective pattern and could have completed. Intraday bias is back on the downside for 1.2932 support next. Break there will affirm this bearish case and target 1.2588 key near term support next. On the upside, above 1.3163 minor resistance will turn bias back to the upside for 1.3267 instead.
In the bigger picture, overall, price actions from 1.1946 medium term low are seen as a corrective pattern that is still in progress. While further upside is expected, larger outlook remains bearish as long as 1.3444 key resistance holds. Down trend from 1.7190 (2014 high) is expected to resume later after the correction completes. And break of 1.2588 will indicate that such down trend is resuming.
