Deeper Downtrend In GBP/USD

Technical Reports

The support of 1.2844 is still aligned. Sustained breach in that place will indicate that corrective recoil from 1.2661 was finished. Larger decline will then head towards repeat test of 1.2661. Following pivot points include: (S1) 1.2839; (P) 1.2889; (R1) 1.2922.

Strong breach should extend deeper downtrend from 1.4376. Over 1.3042, another surge will be seen. Fibonacci level of 1.3316 should bound upside and end the recoil. In that case, a short term reversal will occur.

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.