GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.9447; (P) 1.9592; (R1) 1.9681; More

Cable's consolidation from 1.9502 continues in US session. An intraday low is in place and outlook remains neutral for the moment. Further consolidation could still be seen, but upside should be limited below 1.9772 resistance and bring fall resumption. As discussed before, prior break of 1.9599 support indicates that whole fall from 2.0391 has resumed. It also revived the case that corrective rise from 1.9337 has completed at 2.0391 already. Having said that, further decline is now expected to retest 1.9337 low.

In the bigger picture, down trend from 2.1161 have made a low at 1.9337. While the rebound from 1.9337 might have completed at 2.0391 already, choppy price actions from there is still arguing that consolidation from 1.9337 is not finished yet. Firm break of 1.9337 low is needed to confirm whole down trend from 2.1161 has resumed. Otherwise, consolidation might continue to extend further. Above 1.9908 will flip bias back to the upside for t 61.8% retracement of 2.1161 to 1.9337 at 2.0464.

Also, note that, prior break of medium term rising channel at least indicate that rise from 1.8090 has already completed at 2.1161, so is the medium term up trend from 1.7047 probably. Hence, sustained break of 2.1161 is needed to confirm the whole up trend has resumed. Otherwise, another fall is still expected towards 61.8% retracement of 1.7047 to 2.1161 at 1.8619 after finishing the current consolidation from 1.9337.

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