GBP/USD Daily Outlook

Daily Pivots: (S1) 1.6316; (P) 1.6459; (R1) 1.6550; More

GBP/USD failed 1.6617 again and retreated sharply today. We'll continue to stay neutral as GBP/USD is staying in range of 1.6185/6617. Though, the corrective structure of price actions from 1.6617 continues to argue that it's merely consolidations only. Break of 1.6617/6661 resistance zone will indicate that whole rise from 1.3654 has resumed, targeting 61.8% projection of 1.4395 to 1.6661 from 1.5801 at 1.7201. But after all, we'd expect upside momentum to diminish as GBP/USD approaches this level and bring reversal finally. On the downside, below 1.6185 will turn focus back to 1.5801 support first.

In the bigger picture, rise from 1.3654 is treated as the third leg of the correction that started at 1.3503, which correct the larger down trend from 2.1161. Such rally from 1.3654 should be in the last stage after meeting target zone of 1.6428/7332 (38.2% and 50% retracement of 2.1161 to 1.3503). Focus will remain on reversal signal as we'd expect the whole correction from 1.3503 to conclude here. On the downside, firm break of 1.5801 support will now be an important signal that the whole correction has finally completed and will turn focus to next key support of 1.4984 for confirmation.

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