GBP/USD’s Medium Term Recoil
Pair’s trading tone is neutral. Strong breach of 1.3026 support will extend the fall from 1.3651 and align a key support of 1.2773. Medium term reversal is much more possible now. Following pivot points include: (S1) 1.3219; (P) 1.3253; (R1) 1.3316.
If further rally occurs, 61.8% retracement of 1.3651 to 1.3026 at 1.3412 will restrict the upside and lead to restoration of decrease.
The pair has met a firm resistance from the long term falling trend channel. Prognosis will remain neutral. Choppy breach of 1.2773 key support will affirm ending of recoil from 1.1946. Corrective increase from 1.1946 to 1.3651 will indicate that long term downtrend has finished. Breach of 1.1946 minimum is expected. Breach of 1.3835 support turned resistance will suggest trend reversal and align 38.2% retracement of 2.1161 to 1.1946 at 1.5466.