GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.9603; (P) 1.9760; (R1) 1.9852; More

Cable rebounds strongly after diving to 1.9624 earlier today. Though, with cable staying below 1.9770 minor support, another fall could not be ruled out. But still, the outlook is not outright bearish and is still mixed. As mentioned before, the falling wedge formation from 2.0391 to 1.9599 remains a tricky part of the whole picture as it has short term bullish implication. And with 1.9599 support intact, there is no confirmation of resumption of the fall from 2.0391 yet.

On the upside, above 1.9770 will flip intraday bias back to the upside. However, a break above 1.9965/2.0029 resistance is still needed to indicate that rebound from 1.9337 is resuming for retest of 2.0391 resistance. Meanwhile, on the downside, below 1.9599 support is needed to indicate fall from 2.0391 has resumed towards 1.9337 low.

In the bigger picture, down trend from 2.1161 have made a low at 1.9337. Recent price actions suggest that consolidation/correction from 1.9337 is still in progress and another rise to 2.0391 and above cannot be ruled out. However, strong resistance should still be seen at with 61.8% retracement of 2.1161 to 1.9337 at 2.0464 and bring completion of the corrective rebound. On the downside, break of 1.9599 will revive the case that rise from 1.9337 has completed with three waves up to 2.0391 and will encourage retest this low.

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