Upside of Recovery In GBP/USD
Pair’s trading character is neutral to consolidation over 1.3048. 1.3314 resistance should bound upside of recovery and cause a drop restoration. Following pivot points include: (S1) 1.3111; (P) 1.3163; (R1) 1.3258.
Under 1.3048, the decline from 1.4376 will align 61.8% retracement of 1.1946 to 1.4376 at 1.2875. Breach of 1.3314 will draw firmer recoil to the key resistance of 1.3471.
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 1.3471 resistance is present, the forecast will remain bearish.