GBP/USD’s Corrective Recoil
Pair’s trading tone is neutral. The consolidation from 1.4345 is resuming. If further drop occurs, 1.3915 support should restrain downside of pull back and draw restoration of rally. Following pivot points include: (S1) 1.4052; (P) 1.4165; (R1) 1.4229.
Breach of 1.4345 will prolong the medium term uptrend for 100% projection of 1.2108 to 1.3651 from 1.3038 at 1.4581. Break of 1.3915 will indicate that larger retreat is going to align the resistance turned support of 1.3651.
Firm breach of 1.3835 key resistance will confirm that recoil from 1.1946 is a correction for the long term downtrend from the maximum of 2.1161. Another lift should align 38.2% retracement of 2.1161 to 1.1946 at 1.5466. If 1.3038 support is present and if GBP/USD backs down, medium term forecast remains bullish.