GBP/USD’s Further Increase
Pair’s trading tone is neutral till consolidation under the temporary top of 1.3125. If 1.2811 support is present, further surge is expected. Breach of 1.3125 will head towards 61.8% projection of 1.2108 to 1.3047 from 1.2588 at 1.3168. Following pivot points include: (S1) 1.2988; (P) 1.3056; (R1) 1.3109.
Sustained recoil from 1.1946 is considered as a corrective pattern. Firm resistance from 1.3168 might restrict the upside. Decisive breach of 1.3168 will cause another lift to the key resistance of 1.3444. Breach of 1.2811 support will indicate trend reversal and push trading to the downside towards key support of 1.2588.
Price moves from a medium term minimum of 1.1946 are considered as a corrective pattern. The retreat from 1.3047 has ended. The corrective pattern from 1.1946 keeps extending towards further maximum above 1.3047. Prognosis stays bearish while 1.3444 resistance is present. Bigger downtrend from 1.7190 should prolong after conclusion of the correction. Breach of 1.2588 will suggest extension of this downtrend.