GBP/USD Daily Outlook

Daily Pivots: (S1) 1.5059; (P) 1.5159; (R1) 1.5342; More

As noted before, GBP/USD's consolidation from 1.4783 is still in progress and stronger recovery cannot be ruled out. But after all, we'd expect upside to be limited by 38.2% retracement of 1.6456 to 1.4783 at 1.5422 and bring fall resumption. Below 1.4977 will flip intraday bias back to the downside for 1.4783 low first. Break will confirm that whole fall from 1.6456 is resuming for next target of 200% projection of 1.6875 to 1.5829 from 1.6456 at 1.4364.

In the bigger picture, there is no change in our bearish view. That is, medium term rebound from 1.3503, which is treated as a correction to down trend from 2.1161, has completed at 1.7043 already. Fall from there is tentatively treated as resumption of the down trend from 2.1161 and should target a new low below 1.3503. On the upside, break of 1.5814 resistance is needed to invalidate this view. Otherwise, outlook will remain bearish.

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