Extension of GBP/USD's Rebound
Pair’s break of 1.3042 indicates extension of the corrective recoil from 1.2661. Trading turned up on the upside to 100% projection of 1.2661 to 1.3042 from 1.2784 at 1.3165, and maybe higher. The key fibonacci level of 1.3316 should bound upside, finish the corrective increase and cause short term trend reversal. Following pivot points include: (S1) 1.2932; (P) 1.2992; (R1) 1.3087.
Breach of 1.2896 minor support will confirm ending of the recoil from 1.2661. Trading will then turn up on the downside to 1.2784 and for 1.2661.
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.