GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.9417; (P) 1.9459; (R1) 1.9513; More

Cable's rebound from 1.9363 extends further in early US session and is now pressing 4 hours 55 EMA. At this point, intraday bias will be mildly on the upside as long as 1.9439 minor support holds. As discussed before, bullish convergence condition is seen in 4 hours MACD and RSI. Break of 1.9636 resistance will be the first alert that whole corrective fall from 2.0391 has completed above mentioned 1.9337 support as expected. Further break of the falling trend line resistance (now at 1.9749) will add more credence to this case and bring stronger rally towards 2.0029 resistance first.

In the bigger picture, down trend from 2.1161 have made a low at 1.9337. Rebound from there should have completed with three waves up to 2.0391, which is corrective in nature. Subsequent fall from there also display a corrective structure too. In other words, wide range consolidation from 1.9337 is expected to extend further. Hence, current fall from 2.0391 will likely be contained by 1.9337 support and be followed by another rise to retest 2.0391 resistance or above before completing the consolidation.

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