GBP/USD's Fibonacci Level
The pair broke 1.3459 level but didn’t breach the fibonacci level of 1.3448 and recommenced. Drop from 1.4376 should be progressing. Trading is still on the downside. Firm breach of 1.3448 will head towards 1.2874. Following pivot points include: (S1) 1.3435; (P) 1.3524; (R1) 1.3598.
Breach of 1.3607 resistance should argue a near term bottom formation. Even if GBP/USD recovers, the forecast will remain bearish.
According to bearish divergence condition in daily MACD, the entire medium term recoil from 1.1936 has ended at 1.4376. The cable was rejected from 55 month EMA of 1.4223. Breach of 38.2% retracement of 1.1936 to 1.4376 at 1.3448 will head towards 61.8% retracement at 1.2874 and lower. While 55 day EMA of 1.3861 holds, the forecast remains bearish.