GBP/USD's 55 Month EMA
Pair’s trading tone is neutral. Larger reduction is possible if the whole minor resistance of 1.3929 is present. Breach of 1.3711 will extend the fall from 1.4345 to surpass the resistance turned support of 1.3651. Following pivot points include: (S1) 1.3792; (P) 1.3841; (R1) 1.3894.
Firm support from 38.2% retracement of 1.1946 to 1.4345 at 1.3429 will restrain downside and draw recoil. Breach of 1.3929 minor resistance will argue short term reversal. Trading will turn up on the upside to 1.4144 resistance.
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.