Daily Pivots: (S1) 1.3757; (P) 1.3833; (R1) 1.3888; More….
GBP/USD drops sharply after recovery from 1.3711 ended at 1.3929. But it’s staying above 1.3711 temporary low. Intraday bias remains neutral first. Fall from 1.4345 is in favor to extend and break of 1.3711 will target 1.3651 resistance turned support and below. At this point, we’ll look for strong support from 38.2% retracement of 1.1946 to 1.4345 at 1.3429 to contain downside and bring rebound.
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 1.4259) so far. Break of 1.3038 support, will suggest that rise from 1.1946 has completed and will turn outlook bearish for retesting this low.
