Corrective Recoil In GBP/USD Is In Progress
Trading is on the upside, as a corrective bounce from 1.2956 is progressing. Trading below minor support 1.3070 will bring retest of 1.2956. Pivot points are at: (S1) 1.3149; (P) 1.3175; (R1) 1.3217.
While further growth is expected, upside should be limited below resistance 1.3362. Overcoming of 1.2956 will renew the fall from 1.4376 to fibonacci level 1.2874.
Drop from 1.4376 should widen to 61.8% retracement of 1.1936 to 1.4376 at 1.2874. A medium term recoil from 1.1936 should have completed at 1.4376 already, after rejection from 55 month EMA (now at 1.4179). Overcoming of 38.2% retracement of 1.4376 to 1.3048 at 1.3555 will point out a medium term bottoming. The pair’s forecast will stay bearish in case of strong bounce.