Daily Pivots: (S1) 1.3944; (P) 1.3969; (R1) 1.4020 More….

GBP/USD’s rebound from 1.3777 extends higher today and focus is now on 1.4016 minor resistance Break there will argue that the correction from 1.4240 has completed. Further rise should be seen to retest 1.4240 first. On the other hand, rejection by 1.4016 could extend the correction with another leg through 1.3777. But in that case, downside should be contained by 38.2% retracement of 1.2675 to 1.4240 at 1.3642 to bring rebound.

In the bigger picture, rise from 1.1409 medium term bottom is in progress. Further rally would be seen to 1.4376 resistance and above. Decisive break there will carry larger bullish implications and target 38.2% retracement of 2.1161 (2007 high) to 1.1409 (2020 low) at 1.5134. On the downside, break of 1.3482 resistance turned support is needed to be first indication of completion of the rise. Otherwise, outlook will stay cautiously bullish even in case of deep pullback.

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