Daily Pivots: (S1) 1.3109; (P) 1.3169; (R1) 1.3217; More….
Break of 1.3120 minor support suggests that recovery from 1.3026 is completed at 1.3337. Intraday bias in GBP/USD is turned back to the downside for 1.3026 first. Break will resume whole decline from 1.3651 and target 1.2773 key support next. That will also revive the case that medium term rise from 1.1946 has completed at 1.3651. Meanwhile, above 1.3337 will bring retest of 1.3651 high instead.
In the bigger picture, while the medium term rebound from 1.1946 was strong, GBP/USD hit strong resistance from the long term falling trend line. Outlook is turned a bit mixed and we’ll turn neutral first. On the downside, decisive break of 1.2773 key support will argue that rebound from 1.1946 has completed. The corrective structure of rise from 1.1946 to 1.3651 will in turn suggest that long term down trend is now completed. Break of 1.1946 low should then be seen. On the upside, break of 1.3835 support turned resistance will revive the case of trend reversal and target 38.2% retracement of 2.1161 (2007 high) to 1.1946 (2016 low) at 1.5466.
