Daily Pivots: (S1) 1.2234; (P) 1.2258; (R1) 1.2302; More…
GBP/USD’s strong rally today and breach of 1.2426 resistance indicates that rise from 1.2036 is resuming. Intraday bias is back on the upside. Decisive break of 38.2% retracement of 1.3141 to 1.2036 at 1.2458 will pave the way to 61.8% retracement at 1.2716. For now, further rise will remain in favor as long as 1.2185 support hold, in case of retreat.
In the bigger picture, price actions from 1.3141 are seen as a corrective pattern to rise from 1.0351 (2022 low). Strong rebound from 38.2% retracement of 1.0351 (2022 low) to 1.3141 at 1.2075 will argue that current rise from 1.2036 is already the second leg. However, while further rally could be seen, upside should be limited by 1.3141 to bring the third leg of the pattern.
