Daily Pivots: (S1) 1.3947; (P) 1.4022; (R1) 1.4078; More….
Despite dipping to 1.3964, GBP/USD failed to sustain below 1.3982 support so far and recovered strongly. Intraday bias remain neutral first. Strong rebound from 1.3982, followed by break of 1.4096 minor resistance will retain near term bullish and turn bias to the upside for 1.4243. Break will resume the rally from 1.3711 for 1.4345 high first. Nonetheless, decisive break of 1.3982 will indicate completion of the rise from 1.3711. In that case, deeper decline should be seen back to retest 1.3711.
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.
