GBP/USD’s Retreat Is Over

Pair’s trading is still neutral. The consolidation from 1.3026 is progressing. Upside of recommencement should be bounded under 1.3337 resistance, drawing a decline restoration. Following pivot points include: (S1) 1.3097; (P) 1.3131; (R1) 1.3178.

Breach of 1.3038 will extend the fall from 1.3651 towards a key support of 1.2773. Sustained breach of 1.3337 will suggest that retreat from 1.3651 has ended and medium term lift from 1.1946 is extending.

The pair has met a firm resistance from the long term falling trend channel. Corrective recoil from minimum 1.1946 has completed at 1.3651. Breach of 1.2773 will argue bearishness and align a test on 1.1946 minimum. Overcoming of resistance 1.3320 will resume the growth from 1.1946 for 38.2% retracement of 2.1161 to 1.1946 at 1.5466.