GBP/USD Daily Outlook

Daily Pivots: (S1) 1.5745; (P) 1.5804; (R1) 1.5837; More...

Intraday bias in GBP/USD remains neutral for the moment. Note again that 1.6165 key cluster resistance (61.8% retracement of 1.6746 to 1.5234 at 1.6168) remains intact. Thus, there is no confirmation of completion of fall from 1.6746. Below 1.5643 will flip bias back to the downside for 1.5234. On the upside, above 1.5928 will extend the rebound from 1.5234 towards 1.6165 key resistance.

In the bigger picture, price actions from 1.3503 are treated as consolidations to long term down trend from 2.1161, no change in this view. Recent development, with lack of sustained selling, dampened the bearish view that such consolidation is completed. We'll turn neutral first. On the upside, break of 1.6165 will favor that such consolidation is going to extend with another rise. But strong resistance should be seen at 50% retracement of 2.1161 to 1.3503 at 1.7332 to limit upside to conclude the consolidation. On the downside, below 1.5234 will revive the case that such consolidation is completed and bring deeper fall to 1.4229 support for confirmation.

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