GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.9850; (P) 1.9963; (R1) 2.0028; More

Cable's strong rebound from 1.9897 indicates that an intraday low is already in place. Intraday outlook is turned neutral for the moment. Break of 2.0075 minor resistance will suggest that such correction from 2.0158 has completed and rise from 1.9408 has resumed for 161.8% projection of 1.9363 to 1.9852 from 1.9408 at 2.0199 first and probably extends further to retest 2.0391 resistance. On the downside, though, below 1.9897 will indicate that correction from 2.0158 is still in progress for inner channel support (now at 1.9826). Nevertheless, downside is expected to be contained well above 1.9647 support and bring rally resumption.

In the bigger picture, down trend from 2.1161 have made a low at 1.9337. The corrective nature of the rise from 1.9337 to 2.0391 and fall from 2.0391 to 1.9363 suggests that price actions from 1.9337 are developing into sideway consolidation to whole fall from 2.1161. Though, the structure and length of this consolidation could either be in form of a three wave sideway consolidation or in form of five wave triangle pattern. But in either case, another rise is still expected to test 2.0391 resistance. Nevertheless upside of such consolidation should still be limited by 61.8% retracement of 2.1161 to 1.9337 at 2.0464. On the downside, though, below 1.9647 support will be the first signal that the final rise in the consolidation pattern has completed. Sustained break of 1.9337/63 support zone will indicate that decline from 2.1161 has resumed.

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