Daily Pivots: (S1) 1.3797; (P) 1.3835; (R1) 1.3871; More….
GBP/USD’s break of 1.3785 support suggests resumption of 1.4248. Intraday bias is back on the downside. Such decline is seen as the third leg of the consolidation pattern from 1.4240, and should target 1.3668 support and possibly below. On the upside, break of 1.4000 resistance is needed to indicate short term bottoming. Otherwise, outlook will stay mildly bearish 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.