GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.7157; (P) 1.7406; (R1) 1.7552; More

No change in GBP/USD's outlook. Decline from 1.8668 is still in progress for next downside target of 61.8% projection of 2.158 to 1.7445 from 1.8668 at 1.6991, which is close to 1.7 psychological support. On the upside, while some recovery might be seen, consolidation should be brief and short term outlook will remain bearish as long as 1.7659 resistance holds. However, above 1.7659 will suggest that a short term bottom is formed and bring stronger rebound.

In the bigger picture, a long term top is in place at 2.1161 and down trend from there is still in progress. Next medium term target is 61.8% retracement of 1.3680 to 2.1161 at 1.6538. . The impulsive nature and the scale of the fall from 2.1161 also provides strong evidence to the case of the start of a long term down trend. Sustained break of 1.6538 will target 1.3681 (01 low). On the upside, above 1.8668 resistance is need to confirm that a medium term bottom is formed. Otherwise, outlook will remain bearish and further decline is still expected even in case of stronger than expected rebound.

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