Downtrend Restoration In GBP/USD
Pair’s recommencement from 1.3048 is resuming. Another increase is projected. The minor resistance of 1.3314 minor resistance should bound upside and cause restoration of decline. Following pivot points include: (S1) 1.3184; (P) 1.3217; (R1) 1.3264.
Breach of 1.3048 will expand the drop from 1.4376 and align 61.8% retracement of 1.1946 to 1.4376 at 1.2875. Breach of 1.3314 will cause firmer recoil for 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.