Repeat Test of GBP/USD’s Minimum
Larger decline towards the resistance turned support of 1.3651 is projected if the whole 1.4066 minor resistance is present. The drop from 1.4345 might be a correction for the surge from 1.3038, or for increase from 1.1946. It might as well be an indication of trend reversal. Following pivot points include: (S1) 1.3841; (P) 1.3882; (R1) 1.3932.
Breach of 1.3651 will head towards 1.3429 key fibonacci level. Break of 1.4066 will push trading to the upside towards repeat test of 1.4345.
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.