Daily Pivots: (S1) 1.3845; (P) 1.3921; (R1) 1.3984; More….
GBP/USD drops sharply today but it’s still bounded in range of 1.3764/4144. Intraday bias remains neutral first. On the downside, break of 1.3764 will extend the correction from 1.4345 to 1.3651 resistance turned support. On the upside, break of 1.4144 will extend the rise from 1.3764 and target a test on 1.4345 resistance. Break there will resume larger up trend.
In the bigger picture, as long as 1.3038 support holds, medium term outlook in GBP/USD will remains bullish. Rise from 1.1946 is at least correcting the long term down from 2007 high at 2.1161. Further rally would be seen back to 38.2% retracement of 2.1161 (2007 high) to 1.1946 (2016 low) at 1.5466. However, GBP/USD fails to sustain above 55 month EMA (now at 1.4279) so far. Break of 1.3038 support, will suggests that rise from 1.1946 has completed and will turn outlook bearish for retesting this low.
