Daily Pivots: (S1) 1.3964; (P) 1.4015; (R1) 1.4048; More….
GBP/USD recovery well ahead of 4 hour 55 EMA but stays below 1.4087 temporary top. Intraday bias remains neutral first. As long as 1.3888 minor support holds, further rally is expected. As noted before, correction from 1.4345 could have completed at 1.3711 already. Above 1.4087 will target 1.4144 resistance first. Firm break there should confirm this bullish view and target 1.4345 and above. On the downside, however, break of 1.3888 minor support will dampen this bullish view. Intraday bias would be turned back to the downside to extend the decline from 1.4345 through 1.3711 instead.
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.
