Potential Extension of GBP/USD’s Correction
Pair’s correction from 1.3651 might enlarge. Resilient support from 38.2% retracement of 1.2773 to 1.3651 at 1.3316 should restrain the downside and cause rally restoration. Following pivot points include: (S1) 1.3370; (P) 1.3413; (R1) 1.3483.
Breach of 1.3651 will move trading to the upside towards 1.3835 support turned resistance and then align 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 1.1946. 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.