Daily Pivots: (S1) 1.3730; (P) 1.3796; (R1) 1.3831; More….

GBP/USD’s break of 1.3730 suggests resumption of fall from 1.4248. Intraday bias is back on the downside. Such decline is seen as the third leg of the consolidation pattern from 1.4240. Further fall should be seen to 1.3668 support and possibly below. On the upside, break of 1.3908 resistance is needed to indicate short term bottoming. Otherwise, risk will stay on the downside even in case of recovery.

In the bigger picture, as long as 1.3482 resistance turned support holds, up trend from 1.1409 should still continue. Decisive break of 1.4376 resistance will carry larger bullish implications and target 38.2% retracement of 2.1161 (2007 high) to 1.1409 (2020 low) at 1.5134. However, firm break of 1.3482 support will argue that the rise from 1.1409 has completed and bring deeper fall to 1.2675 support and below.

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