GBP/USD: Bounce Extends
Trading is neutral, as the bounce from 1.2692 extends higher. Still, the pair is bounded below support turned resistance 1.2921. Hitting of 1.2661 will renew larger downtrend from 1.4376 to 61.8% projection of 1.4376 to 1.2661 from 1.3297 at 1.2237. Pivot points are at: (S1) 1.2698; (P) 1.2765; (R1) 1.2833.
Break of 1.2921 will widen the consolidation from 1.2661 with another rise towards resistance 1.3297. The pair’s near term forecast will remain cautiously bearish while support turned resistance 1.2921 keeps.
A medium term bounce from 1.1946 should have completed at 1.4376 already, after rejection from 55 month EMA. 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.