GBP/USD Daily Outlook

Daily Pivots: (S1) 1.4837; (P) 1.5059; (R1) 1.5314; More

GBP/USD retreats mildly after hitting as high as 1.5278 but still, intraday bias remains on the upside as long as 1.4805 minor support holds. The current rally could still extend further towards 1.5722 resistance but upside is expected to be limited below there and bring resumption of medium term down trend. Below 1.4805 will flip intraday bias back to the downside for retesting 1.4350 low.

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. Fourth wave consolidation might have completed at 1.5722 or it's unfolding as an expanding triangle with rise from 1.4350 as the last leg. In either case, upside of rise from 1.4350 should be limited below 1.5722 resistance and bring down trend resumption, 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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