GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.4819; (P) 1.5033; (R1) 1.5165; More

GBP/USD's break of 1.4900 minor support indicates that recovery from 1.4557 has completed at 1.5249 after being limited by 4 hours 55 EMA. Intraday bias is now back to the downside for retesting 1.4557 low first. Also, recent decline should be resuming for 100% projection of 1.7630 to 1.5269 from 1.6671 at 1.4310. On the upside, above 1.5249 will suggest that rebound from 1.4557 is still in progress. But still, upside is expected to be limited by 1.5600 cluster resistance and bring down trend resumption.

In the bigger picture, there are some different interpretations of the structure of the whole down trend from 2.1161, with different projection targets. Main question is whether fall from 1.8668 is the fifth wave in the five wave sequence from 2.1161 (1.9337, 2.0158, 1.7445, 1.8668, ?) or it's the third wave inside the fall from 2.0158. In either case, fall from 1.8668 is possibly completing a five wave sequence of its own. Strong rebound from 1.4278/4310 cluster projection target (100% projection of 1.7630 to 1.5269 from 1.6671 at 1.4310, 161.8% projection of 2.0158 to 1.7445 from 1.8668 at 1.4278), followed by break of 1.5600 resistance will suggests that a medium term bottom is formed and bring larger scale correction. Though, sustained trading below 1.4278/4310 will target 1.3680 key long term support (01 low).

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