GBP/USD: Downtrend Resumption Is Not Ruled Out
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.