Progression Of GBP/USD's Long Term Downtrend
Pair’s recoil from 1.2661 edged higher to 1.3038. Trading remains on the upside. According to bullish convergence in daily MACD, the cable formed a medium term bottom at 1.2661. Following pivot points include: (S1) 1.2904; (P) 1.2969; (R1) 1.3092.
Another increase should align 55 day EMA and 1.3212 resistance. Firm resistance from the fibonacci level of 1.3316 should bound upside. Breach of 1.2844 support will confirm ending of recoil and target repeat test of 1.2661 minimum.
The intact medium term recoil from 1.1946 should have ended at 1.4376 after being rejected by 55 month EMA. Considering impulse of the drop from 1.4376, long term downtrend is progressing. Strong breach of 1.3316 should cause firmer recoil for 61.8% retracement at 1.3721. Repeat test of 1.1946 minimum might become the next target.