GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.7903; (P) 1.8134; (R1) 1.8312; More

GBP/USD continues to stay in tight range above 1.7960 today. Intraday bias remains on the downside as long as 1.8227 minor resistance holds. As discussed before, rebound from 1.7445 has likely completed at 1.8668. Further break of 1.7916 support will confirm this case and bring retest of 1.7445 low and long term fibonacci level of 50% retracement of 1.3680 to 2.1161 at 1.7421. On the upside, above 1.8227 will turn intraday outlook neutral first but another fall is still in favor after recovery.

In the bigger picture, as mentioned before, the rebound from 1.7445, which is treated as correction to down trend from 2.1161 only, could have completed after meeting target of 1.8512/8794 resistance zone and was limited below key near term resistance of 1.8794 (50% retracement of 2.0158 to 1.7445 at 1.8802). Medium term outlook remains unchanged. Fall from 2.1161 (07 high) is expected to developing into a five wave decline before making a medium term bottom. sustained break of 1.7421/45 support zone will confirm that this fall has resumed for next target of 61.8% retracement of 1.3680 to 2.1161 at 1.6538 first. Break of 1.9337 support turned resistance is needed to invalidate this view.

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