GBP/USD Daily Outlook

Daily Pivots: (S1) 1.6501; (P) 1.6851; (R1) 1.7054; More

GBP/USD's fall extends sharply further after taking out 1.6786 low and reaches as low as 1.6203 so far. At this point intraday bias remains on the downside as long as 1.6604 minor resistance holds. Next downside target is 100% projection of 100% projection of 1.8668 to 1.6786 from 1.7630 at 1.5748. On the upside, above 1.6604 will indicate that an intraday low is in place and bring consolidation. But recovery should be limited below 1.7136 resistance and bring fall resumption.

In the bigger picture, the down trend from 2.1161 is still in progress. Firm break of mentioned long term fibonacci level of 61.8% retracement of 1.3680 to 2.1161 at 1.6538 now set the stage for deeper decline to next long term cluster support, which is 76.4% retracement at 1.5446 and 261.8% projection of 2.1161 to 1.9337 from 2.0158 at 1.5383. On the upside, a break above 1.7630 resistance is needed to indicate that a medium term bottom is formed. Otherwise, medium term outlook remains bearish.

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