GBP/USD: Range Trading Continues
Stance of trading is neutral, as the pair stays in a tight range above temporary low 1.2658. Price moves from 1.2661 are viewed as a consolidation. Pivot points are at: (S1) 1.2693; (P) 1.2749; (R1) 1.2787.
Overcoming of low 1.2661 will resume larger downtrend from 1.4376 and aline 1.1946. While further growth is expected, upside should be limited by fibonacci level 1.3316. Hitting of 1.2927 will widen the consolidation from 1.2661 with another growth.
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.