Temporary Bottom In GBP/USD

Technical Reports

Pair’s trading stays on the downside. Actual decline from 1.4376 should align 61.8% retracement of 1.1946 to 1.4376 at 1.2875 first. Breach in that area will head towards 61.8% projection of 1.4376 to 1.3101 from 1.3471 at 1.2683. Following pivot points include: (S1) 1.3043; (P) 1.3085; (R1) 1.3119.

Breach of 1.3314 resistance should confirm temporary bottoming. The forecast will stay bearish even if GBP/USD recovers.

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 is present, the forecast will remain bearish.