GBP/USD’s rebound from 1.2036 prolonged increased final week however was rejected by close to time period falling channel resistance, and fell notably since then. Preliminary bias stays on the draw back this week for retesting 1.2036. Agency break will resume entire decline from 1.3141 for 1.1801 assist subsequent. On the upside, above 1.2224 minor resistance will flip intraday bias impartial first. However threat will keep on the draw back so long as 1.2336 resistance holds.
Within the greater image, fall from 1.3141 medium time period prime might nonetheless be a correction to up pattern from 1.0351 (2022 low) solely. However threat of full pattern reversal is rising. Sustained break of 38.2% retracement of 1.0351 to 1.3141 at 1.2075 will pave the way in which to 61.8% retracement at 1.1417. For now, threat will keep on the draw back so long as 55 D EMA (now at 1.2418) holds, in case of rebound.
In the long run image, there isn’t a clear signal of pattern reversal but. Rise from 1.0351 may very well be a part of a consolidation sample to down pattern from 2.1161 (2007 excessive). Rejection by 55 M EMA (now at 1.2900) will retain long run bearishness for extending the down pattern at a later stage.
