GBP/USD's Corrective Recoil Resumes
Pair’s trading is slightly on the upside. The corrective recoil from 1.2661 is resuming. Breach of 1.3042 will align 100% projection of 1.2661 to 1.3042 from 1.2784 at 1.3165. Following pivot points include: (S1) 1.2799; (P) 1.2891; (R1) 1.2997.
The fibonacci level of 1.3316 would then bound the upside, finish the recoil and lead to short term trend reversal. Under 1.2784 support, the cable will head towards 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.