GBP/USD Daily Outlook

Daily Pivots: (S1) 1.4618; (P) 1.4804; (R1) 1.5106; More

GBP/USD's break of 1.4766 resistance indicate that fall from 1.5722 has completed at 1.4350 and a short term bottom is in place. Further rebound could now be seen but upside is expected to be limited well below 1.5722 resistance and bring down trend resumption. Below 1.4503 will indicate that corrective rise from 1.4350 has completed and recent fall is resuming for long term support at 1.3680 (50% projection of 1.8668 to 1.4557 from 1.5722 at 1.3667).

In the bigger picture, interpretations of the fall from 2.0158 is that first wave has completed at 1.7445, second at 1.8668, third at 1.4557 and fourth wave consolidation should have completed at 1.5722. The current fall from 1.5722 might represent the last leg in this five wave sequence and is targeting mentioned 1.3680 (50% projection of 1.8668 to 1.4557 from 1.5722 at 1.3667). On the upside, though, break of 1.5227 resistance will be the first alert that such medium term fall from 2.0158 has completed and a medium term bottom is formed. Some large scale rebound should be seen in such case.

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