GBP/USD Still On The Downside
Pair’s trading stays on the downside. The corrective recoil from 1.2661 might have ended at 1.3042. Larger decline should align repeat test of 1.2661. Sustained breach in that zone will extend deeper downtrend from 1.4376. Following pivot points include: (S1) 1.2814; (P) 1.2851; (R1) 1.2890.
Over the minor resistance of 1.2932, the correction from 1.2661 will resume with further increase, exceeding 1.3042 resistance. The fibonacci level of 1.3316 would then bound the upside, finish the recoil and lead to short term reversal.
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.