GBP/USD's Medium Term Bottom

Technical Reports

Pair’s trading stays cautiously on the downside. The downtrend from 1.4376 has extended and is expected to align the fibonacci level of 1.2874. Following pivot points include: (S1) 1.2904; (P) 1.2960; (R1) 1.2999.

Over the minor resistance of 1.2998, trading will turn up in the neutral position. If GBP/USD recovers, upside would be bounded under 1.3212 resistance, causing a drop 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.