Trend Reversal In GBP/USD
Pair’s trading tone is neutral. The correction from 1.3203 is extending. Another recoil is expected. 1.3617 resistance should restrict upside and lead to a trend reversal. Following pivot points include: (S1) 1.3280; (P) 1.3322; (R1) 1.3389.
Breach of 1.3203 will extend the drop from 1.4376 for 50% retracement of 1.1946 to 1.4376 at 1.3161 first, and 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.