Downside In GBP/USD

Technical Reports

Pair’s trading stays neutral. The minor support of 1.3189 is aligned. Breach in that zone will suggest conclusion of corrective surge from 1.3048. In that case, trading will turn up on the downside to repeat test of 1.3048 minimum. Following pivot points include: (S1) 1.3175; (P) 1.3230; (R1) 1.3262.

Breach will also extend deeper drop from 1.4376 to the fibonacci level of 1.2874. If further increase through 1.3362 occurs, firm resistance from 1.3471 would bound upside and complete the corrective recoil.

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.