GBP/USD Daily Outlook

Daily Pivots: (S1) 1.9417; (P) 1.9459; (R1) 1.9513; More

Cable's recovery from 1.9363 continues today. Downside momentum continues to diminish as seen in bullish convergence condition in 4 hours MACD and RSI. While further decline could be seen, downside is still expected to be contained by 1.9337 low and bring rebound. Above 1.9636 resistance will be the first alert that whole corrective fall from 2.0391 has completed. Further break of the falling trend line resistance (now at 1.9753) will add more credence to this case and bring stronger rally towards 2.0029 resistance first.

In the bigger picture, down trend from 2.1161 have made a low at 1.9337. Rebound from there should have completed with three waves up to 2.0391, which is corrective in nature. Subsequent fall from there also display a corrective structure too. In other words, wide range consolidation from 1.9337 is expected to extend further. Hence, current fall from 2.0391 will likely be contained by 1.9337 support and be followed by another rise to retest 2.0391 resistance or above before completing the consolidation.

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