GBP/USD Daily Outlook

Daily Pivots: (S1) 1.9968; (P) 2.0019; (R1) 2.0090; More

Cable's retreat from 2.0158 is still in progress and touches 4 hours 55 EMA as expected. At this point, intraday bias remains mildly on the downside and further fall could still be seen. Nevertheless, downside is expected to be contained well above 1.9647 support and bring rally resumption. Above 2.0072 minor resistance will flip intraday bias back to the upside for 2.0158 resistance first. As discussed before, rise from 1.9363 represents another rising leg of the consolidation pattern that started at 1.9337. Above 2.0158 will indicate such rise has resumed for 161.8% projection of 1.9363 to 1.9852 from 1.9408 at 2.0199 first and probably extends further to retest 2.0391 resistance.

In the bigger picture, down trend from 2.1161 have made a low at 1.9337. The corrective nature of the rise from 1.9337 to 2.0391 and fall from 2.0391 to 1.9363 suggests that price actions from 1.9337 are developing into sideway consolidation to whole fall from 2.1161. Though, the structure and length of this consolidation could either be in form of a three wave sideway consolidation or in form of five wave triangle pattern. But in either case, another rise is still expected to test 2.0391 resistance. Nevertheless upside of such consolidation should still be limited by 61.8% retracement of 2.1161 to 1.9337 at 2.0464. On the downside, below 1.9647 support is needed to be the first signal that the final rise in the consolidation pattern has completed and turn focus back to 1.9337/63 support zone.

Subscribe to our daily and mid-day newsletter to get this report delivered to your mail box