GBP/USD's Temporary Bottom

Technical Reports

Pair’s recoil from the temporary bottom of 1.3048 is extending. Trading is on the upside. Breach of 1.3314 should prolong the recoil to 1.3471 resistance. Following pivot points include: (S1) 1.3228; (P) 1.3260; (R1) 1.3316.

Firm resistance from 1.3471 should bound upside. Under the minor support of 1.3200, trading will turn up on the downside to repeat test of 1.3048 minimum.

The intact medium term recoil from 1.1936 should have ended at 1.4376 after being rejected by 55 month EMA. Drop from 1.4376 should prolong for 61.8% retracement of 1.1936 to 1.4376 at 1.2874. Strong breach of 38.2% retracement of 1.4376 to 1.3048 at 1.3555 should confirm medium term bottom formation. Even if GBP/USD recoils, the forecast would stay bearish.