GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.9693; (P) 1.9795; (R1) 1.9966; More

Outlook in cable remains unchanged since even though wild volatility is seen in the pair, there isn't any break out yet. The falling wedge formation from 2.0391 to 1.9599 is still the most important factor in the near term outlook as it has short term bullish implication. And with 1.9599 support intact, price actions from 2.0029 is still treated as consolidation to rise from 1.9599 only. On the upside, a break above 1.9965/2.0029 resistance zone will confirm the short term bullish outlook. This will also 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 is still in favor. 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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