Daily Pivots: (S1) 1.4016; (P) 1.4131; (R1) 1.4195; More…
GBP/USD’s fall from 1.4376 accelerates to as low as 1.4039 so far. The strong break of 1.4144 firstly indicate short term topping. And considering bearish divergence condition in daily MACD, it’s also an early sign of medium term topping. Intraday bias is turned to the downside for 1.3965 support first. Break will pave the way to retest 1.3711 key support level On the upside, above 1.4160 minor resistance will turn focus back to 1.4376 instead.
In the bigger picture, rise from 1.1946 (2016 low) is still in progress . It is at least correcting the long term down trend 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. We’d continue to favor this medium term bullish view as long as 1.3711 support holds, even in case of deep pull back.
