GBP/USD Daily Outlook

Daily Pivots: (S1) 1.9709; (P) 1.9838; (R1) 1.9916; More

Cable's fall from 2.0158 extends further to as low as 1.9761 before recovering mildly. At this moment further decline is still in favor as long as 1.9969 resistance holds. Focus is on 1.9647 support. Development in other pairs argues that dollar is staging and stronger rebound. Break of 1.9647 support will put cable back inline with other majors and will target 1.9337/63 support zone next. Though, strong rebound above 1.9647, followed by break of 1.9969 resistance will reaffirm the case that rise from 1.9363 is still in progress for 2.0391 resistance before completion.

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. Considering the relatively lack of strength in the current rise from 1.9363, Cable could be developing into a five wave triangle consolidation.

But in any case, more choppy range trading is still expected as long as 1.9337/63 support zone holds. Upside of the consolidation is expected to be limited by 61.8% retracement of 2.1161 to 1.9337 at 2.0464. Sustained break of 1.9337/63 support zone will indicate that decline from 2.1161 has resumed.

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