GBP/USD Daily Outlook

Daily Pivots: (S1) 1.6974; (P) 1.7185; (R1) 1.7303; More

GBP/USD's fall extends further to as low as 1.6786 today, taking out mentioned 61.8% projection of 2.158 to 1.7445 from 1.8668 at 1.6991. At this point, intraday bias remains on the downside and further decline is expected to next target of 61.8% retracement of 1.3680 to 2.1161 at 1.6538. above 1.7398 will turn intraday outlook neutral first. But consolidation should be relatively brief as long as 1.7398 resistance holds and recent decline is still expected to resume sooner rather than later.

In the bigger picture, a long term top is in place at 2.1161 and down trend from there is still in progress. Next medium term target is 61.8% retracement of 1.3680 to 2.1161 at 1.6538. The impulsive nature and the scale of the fall from 2.1161 also provides strong evidence to the case of the start of a long term down trend. Sustained break of 1.6538 will target 1.3681 (01 low). On the upside, above 1.8668 resistance is need to confirm that a medium term bottom is formed. Otherwise, outlook will remain bearish and further decline is still expected even in case of stronger than expected rebound.

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