Daily Pivots: (S1) 1.3746; (P) 1.3845; (R1) 1.3899; More….

A temporary low is formed at 1.3785 in GBP/USD with current recovery. Intraday bias is turned neutral for the moment. Deeper fall is still expected as long as 4 hour 55 EMA (now at 1.4008) holds. Current decline from 1.4248 is seen as the third leg of the consolidation pattern from 1.4240. Below 1.3785 will target 1.3668 support and below. However, sustained break of the 4 hour 55 EMA will bring stronger rise back to retest 1.4240/8 resistance zone.

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.

Source link