GBP/USD’s Downside Trading
Pair’s trading stays on the downside. The fall from 1.4345 is extending towards resistance turned support of 1.3651. Drop from 1.4345 might be a correction for the surge from 1.3038, or for increase from 1.1946. It might even lead to reversal. Following pivot points include: (S1) 1.3814; (P) 1.3940; (R1) 1.4035.
Breach of 1.3651 will head towards 1.3429 key fibonacci level. If the minor resistance of 1.4066 is present, another decrease remains projected.
Medium term forecast stays bullish if 1.3038 support stands. Increase from 1.1946 is a correction for the long term downtrend from the maximum of 2.1161. Another rally should align 38.2% retracement of 2.1161 to 1.1946 at 1.5466. The pair can’t surpass 55 month EMA. Breach of 1.3038 support will indicate ending of the lift from 1.1946, which will make prognosis bearish till repeat test of this level.