GBP/USD Weekly Outlook
GBP/USD’s downtrend resumed last week and hit as low as 1.2274. Initial bias stays on the downside and a firm break of 161.8% projection of 1.3641 to 1.2999 from 1.3297 at 1.2258 will target a 200% projection at 1.2013 next. On the upside, the break of 1.2637 resistance is needed to indicate short-term bottoming. Otherwise, the outlook will remain bearish in case of recovery.
In the bigger picture, based on current momentum, the fall from 1.4248 (2018 high) is at least at the same degree as the rise from 1.1409 (2020 low). That is, a fall from 1.4248 could be a leg inside the pattern from 1.1409, or resuming the longer-term downtrend. In either case, a deeper decline is expected as long as 1.2999 support turned resistance holds. The next target is 1.1409 low.
