GBP/USD’s Trading Tone

The pair has closed inside of consolidation from 1.3651. Trading tone is neutral. If larger drop occurs, 38.2% retracement of 1.2773 to 1.3651 at 1.3316 should restrain the downside and lead to restoration of growth. Following pivot points include: (S1) 1.3410; (P) 1.3490; (R1) 1.3549.

Over 1.3651 trading will turn up on the upside towards 1.3835 support turned resistance. Breach in that spot will head towards 55 month EMA.

Firm breach of 1.3444 key resistance means reversal of the long term trend. According to bullish convergence in monthly MACD, the key bottom was probably created at 1.194. Actual lift from 1.1946 should align 38.2% retracement of 2.1161 to 1.1946 at 1.5466. If 1.2773 support is present, medium term prognosis remains bullish.