GBP/USD's Rally

Technical Reports

Pair’s trading stays neutral. The minor support of 1.3347 is aligned. Strong breach in that zone will indicate ending of the corrective increase from 1.3203. In that case, trading will turn up on the downside. Following pivot points include: (S1) 1.3337; (P) 1.3389; (R1) 1.3435.

Drop from 1.4376 should extend through 1.3203 to 50% retracement of 1.1946 to 1.4376 at 1.3161 and 61.8% retracement at 1.2875. If further rally occurs, 1.3617 resistance would bound upside and draw reversal.

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 1.3617 resistance is present, the forecast will remain bearish.