GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.9790; (P) 1.9836; (R1) 1.9861; More

Cable continues to stay in tight range above 1.9736 today. An intraday bottom might be in place with 4 hours MACD staying above signal line. Though further decline is still expected as long as cable stays below 1.9910 minor resistance. As discussed before, sustained trading below the inner channel suggests that rise from 1.9360 has completed. Break of 1.9720 support will encourage a retest of 1.9360 low first. meanwhile, above 1.9910 resistance will argue that stronger rebound should be seen to 4 hours 55 EMA (now at 1.9961) or above.

In the bigger picture, corrective rebound from 1.9337 was limited at 2.0389 after testing mentioned key resistance zone of 161.8% projection of 1.9337 to 1.9957 from 1.9360 at 2.0363 and 61.8% retracement of 2.1161 to 1.9337 at 2.0464. The three wave structure of such rebound suggest that it's merely a correction to whole decline from 2.1161. Break of 1.9360 will confirm that such decline has resumed for next target of 1.8565/8619 cluster support (100% projection of 2.1161 to 1.9337 from 2.0389 at 1.8565, 61.8% retracement of 1.7407 to 2.1161 at 1.8619). On the upside, as discussed before, decisive break of 2.0363/0464 will dampen this view and encourage a retest of 2.1161 high.

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