Daily Pivots: (S1) 1.6575; (P) 1.6651; (R1) 1.6693; More...
GBP/USD's decline continues today and reaches as low as 1.6601 so far. Intraday bias remains on the downside. The current development confirms medium medium term reversal and deeper fall should be seen to 1.6251 cluster support (38.2% retracement of 1.4813 to 1.7190 at 1.6282). Meanwhile, break of 1.6737 resistance is needed to be the first indication of short term bottoming. Otherwise, outlook will stay bearish in case of recovery.
In the bigger picture, price actions from 1.3503 (2009 low) are treated as consolidations to long term down trend from 2.1161. The current development, with medium term top formed at 1.7190, argues that such consolidation is possibly completed, just below 50% retracement from 2.1161 to 1.3503 at 1.7332. Focus now turns to 55 weeks EMA (now at 1.6506). Sustained trading there will pave the way for 1.4813 key support and below.
