GBP/USD’s Fall As Correction

Technical Reports

Pair’s trading tone is neutral. The fall might be a correction for the increase from 1.3038, or for the lift from 1.1946. It might even draw a trend reversal. Following pivot points include: (S1) 1.3814; (P) 1.3940; (R1) 1.4035.

If 1.4345 resistance is present, further drop is expected. Under 1.3835, GBP/USD will head towards the resistance turned support of 1.3651. Breach of 1.3651 will align 1.3429 key fibonacci level.

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 GBP/USD backs down, medium term forecast remains bullish.