GBP/USD Daily Outlook

Daily Pivots: (S1) 1.7387; (P) 1.7876; (R1) 1.8203; More

GBP/USD weakness mildly today but is still holding above 1.7551 low. Intraday outlook remains neutral with 4 hours MACD staying above signal line. Some more consolidation could be seen to 1.7873 minor resistance but upside should be limited well below 1.8183 resistance and bring fall resumption. Below 1.7551 will indicate fall from 1.8668 has resumed and bring retest of 1.7445 low and long term fibonacci level of 50% retracement of 1.3680 to 2.1161 at 1.7421.

In the bigger picture, as mentioned before, the rebound from 1.7445, which is treated as correction to down trend from 2.1161 only, have completed after meeting target of 1.8512/8794 resistance zone and was limited below key near term resistance of 1.8794 (50% retracement of 2.0158 to 1.7445 at 1.8802). Medium term outlook remains unchanged. Fall from 2.1161 (07 high) is expected to developing into a five wave decline before making a medium term bottom. Sustained break of 1.7421/45 support zone will confirm that this fall has resumed for next target of 61.8% retracement of 1.3680 to 2.1161 at 1.6538 first. Break of 1.9337 support turned resistance is needed to invalidate this view.

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