GBP/USD’s fall from 1.3141 continued final week. Preliminary bias stays on the draw back this week for 100% projection of 1.3141 to 1.2618 from 1.2799 at 1.2276. On the upside, although, agency break of 1.2547 resistance will now point out brief time period bottoming, and produce stronger rebound.
Within the greater image, fall from 1.3141 medium time period high is seen as a correction to up pattern from 1.0351 (2022 low). Deeper decline can be seen to 38.2% retracement of 1.0351 to 1.3141 at 1.2075. Sturdy help can be seen there to convey rebound on first try. Nonetheless, sustained break of 1.2075 will increase the prospect of bearish pattern reversal.
In the long run image, there is no such thing as a clear signal of pattern reversal but. Rise from 1.0351 might 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.
