GBP/USD's Firmer Recovery
Pair’s trading is still neutral to consolidation over the near term bottom of 1.3203. Firmer recovery is expected. While 1.3617 resistance is present, short term forecast will stay bearish. Following pivot points include: (S1) 1.3242; (P) 1.3274; (R1) 1.3315.
Decline from 1.4376 should prolong. Under 1.3203, GBP/USD will head towards 50% retracement of 1.1946 to 1.4376 at 1.3161. Breach will align 61.8% retracement at 1.2875.
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. 61.8% retracement of 1.1936 to 1.4376 at 1.2874 will be hit in the near term. Long term downtrend restoration is so far unlikely. While 55 day EMA stands, the forecast will remain bearish.