Short Term Top in GBP/USD
Pair’s trading tone is neutral. The consolidation over the short term top of 1.4243 is present. With the minor support of 1.3982, short term prognosis stays slightly bullish. Over 1.4243, the cable will head towards the maximum of 1.4345. Following pivot points include: (S1) 1.4068; (P) 1.4156; (R1) 1.4246.
Sustained breach should extend bigger uptrend and align 61.8% projection of 1.3038 to 1.4345 from 1.3711 at 1.4519. Decisive breach of 1.3982 will confirm conclusion of recoil from 1.3711. Trading will turn up on the downside to repeat test of 1.3711 level.
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 the minimum.