Daily Pivots: (S1) 1.3276; (P) 1.3320; (R1) 1.3398; More…
GBP/USD’s rebound from 1.3158 resumes today by breaking 1.3373 and hits as high as 1.3434 so far. Intraday bias is back on the upside. Sustained trading above 55 day EMA (now at 1.3423) will be an early sign of bullish reversal. That is, correction from 1.4248 might have completed with three waves down to 1.3158, after hitting 1.3164 medium term fibonacci level. Further rally would be seen to 1.3570 support turned resistance next. On the downside, break of 4 hour 55 EMA (now at 1.3283) will turn focus back to 1.3164 instead.
In the bigger picture, focus remains on 38.2% retracement of 1.1409 to 1.4248 at 1.3164. Sustained break there will argue that whole rise from 1.1409 has completed at 1.4248, after rejection by 1.4376 long term resistance. That will revive some medium term bearishness and and target 61.8% retracement at 1.2493. However, strong rebound from current level will revive argue that up trend from 1.1409 is still in progress, and probably ready to resume.
