Daily Pivots: (S1) 1.3004; (P) 1.3047; (R1) 1.3071; More…
GBP/USD’s down trend resumes today by breaking through 1.2971 support. Intraday bias back on the downside. Sustained trading below 61.8% projection of 1.3641 to 1.2999 from 1.3297 at 1.2900 will pave the way to 100% projection at 1.2655. On the upside, break of 1.3089 resistance is needed to indicate short term bottoming. Otherwise, outlook will stay bearish in case of recovery.
In the bigger picture, rise from 1.1409 (2020 low) has completed at 1.4248. Decline from 1.4248 could still be a corrective move, or it could be the start of a long term down trend. In either case, deeper decline would be seen back to 61.8% retracement of 2.1161 to 1.1409 at 1.2493. In any case, break of 1.3158 support turned resistance is needed to be the first sign of medium term bottoming. Otherwise, outlook will stay bearish in case of rebound.
