GBP/USD Daily Outlook

Daily Pivots: (S1) 1.5228; (P) 1.5305; (R1) 1.5401; More

GBP/USD's corrective rise from 1.4783 might still be in progress but after all, we'd still expect upside to be limited by 38.2% retracement of 1.6456 to 1.4783 at 1.5422 and bring fall resumption. Below 1.5208 minor support will turn intraday bias neutral first. Further break of 1.4977 will argue that correction from 1.4783 is completed and recent down trend is possibly resuming for a new low below 1.4783. However, note that sustained break of 1.5422 will dampen our view and would bring stronger rise towards next cluster resistance at 1.5814 instead.

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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