Another Rally in GBP/USD
Pair’s trading stays on the upside. The corrective recoil from 1.3203 is progressing. Another rally could become a correction. 1.3617 resistance should restrain upside and cause reversal. Following pivot points include: (S1) 1.3380; (P) 1.3412; (R1) 1.3446.
Breach of 1.3347 minor support will expand the drop from 1.47376 through 1.3203 for 50% retracement of 1.1946 to 1.4376 at 1.3161 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.