GBP/USD Daily Outlook

Daily Pivots: (S1) 1.5548; (P) 1.5592; (R1) 1.5640; More.

Upside momentum in GBP/USD is diminishing mildly intraday bias remains on the upside as long as 1.5547 minor support holds. Whole rise from 1.4230 is expected to continue towards 61.8% retracement of 1.7043 to 1.4230 at 1.5968 next. On the downside, below 1.5547 minor support will turn bias neutral and bring retreat. But downside should be contained by 1.5123 support and bring another rise.

In the bigger picture, current rise from 1.4230 is treated as the third leg of the whole medium term consolidation pattern that started at 2009 low of 1.3503. Further rally would now be seen towards 1.7043 resistance and possibly above and the consolidation continues. However, we'd expect strong resistance between 1.7043 and 50% retracement of 2.1161 to 1.3503 at 1.7332 and finally bring long term down trend resumption. On the downside, break of 1.5123 support will argue that rise from 1.4230 has possibly completed earlier than we thought and will turn focus back to this low.

Subscribe to our daily and mid-day newsletter to get this report delivered to your mail box