GBP/USD's Corrective Pattern

Technical Reports

The pair is restrained inside of 1.3070/3212 diapason. Trading is still neutral. Breach of 1.3070 minor support will indicate that the recoil from 1.2956 has finished. In that case, trading will turn up on the downside to this minimum. Following pivot points include: (S1) 1.3102; (P) 1.3128; (R1) 1.3158.

Strong breach should extend deeper fall from 1.4376 to the fibonacci level of 1.2874. Over 1.3212, another recovery will be seen. Price movement from 1.2956 is viewed as a corrective pattern. U 1.3362 resistance should bound upside and cause a deeper fall restoration.

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 1.2874 will indicate a long term downtrend restoration through the minimum of 1.1946. Breach of 1.3362 resistance should argue medium term bottoming. Even if GBP/USD recoils, the forecast would stay bearish.