GBP/USD Daily Outlook

Daily Pivots: (S1) 1.9656; (P) 1.9713; (R1) 1.9794; More

Cable dives further to as low as 1.9591 today and break of 1.9599 low dampened our original short term bullish view. Instead, it suggests that the decline from 2.0391 might have resumed. At this point, further decline is in favor to retest 0.9337 low as long as 1.9972 resistance holds. Above 1.9772 will turn outlook mixed again.

In the bigger picture, down trend from 2.1161 have made a low at 1.9337. While the rebound from 1.9337 might have completed at 2.0391 already, choppy price actions from there is still arguing that consolidation from 1.9337 is not finished yet. Firm break of 1.9337 low is needed to confirm whole down trend from 2.1161 has resumed. Otherwise, consolidation might continue to extend further. Above 1.9908 will flip bias back to the upside for t 61.8% retracement of 2.1161 to 1.9337 at 2.0464.

Also, note that, prior break of medium term rising channel at least indicate that rise from 1.8090 has already completed at 2.1161, so is the medium term up trend from 1.7047 probably. Hence, sustained break of 2.1161 is needed to confirm the whole up trend has resumed. Otherwise, another fall is still expected towards 61.8% retracement of 1.7047 to 2.1161 at 1.8619 after finishing the current consolidation from 1.9337.

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