GBP/USD: Downtrend Resumption Is Not Ruled Out

Technical Reports

Trading is on the downside, as corrective growth from 1.2661 has completed at 1.3297, ahead of 1.3316 key fibonacci level. Pivot points are at: (S1) 1.2990; (P) 1.3041; (R1) 1.3080.

Hitting of 1.2784 will argue that larger downtrend from 1.4376 is resuming through 1.2661. Trading above minor resistance 1.3089 will become neutral. Consolidation before staging another decline is expected.

A medium term bounce from 1.1946 should have completed at 1.4376 already, after rejection from 55 month EMA (now at 1.4062). Overcoming of 1.3316 would bring stronger rebound to 61.8% retracement at 1.3721. Downtrend resumption is forecast. This will be the preferred case while 38.2% retracement of 1.4376 to 1.2661 at 1.3316 keeps.