Rally in GBP/USD
Pair’s trading character is neutral. GBP/USD aligned 1.3341. Breach will suggest ending of the corrective increase from 1.3203. In that case, trading will turn up on the downside. Following pivot points include: (S1) 1.3333; (P) 1.3379; (R1) 1.3416.
Decline from 1.4376 will 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 lead to 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.