Daily Pivots: (S1) 1.2565; (P) 1.2608; (R1) 1.2640; More…
GBP/USD’s breach of 1.2590 minor support suggests short term topping at 1.2731, on bearish divergence condition in 4H MACD. Intraday bias is mildly on the downside for deeper pull back to 55 D EMA (now at 1.2427). For now, risk will stay on the downside as long as 1.2731 resistance holds, in case of recovery.
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 suggests 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.
. For now, risk will stay on the downside as long as 1.2731 resistance holds, in case of recovery.){kind=link}