GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.4661; (P) 1.5029; (R1) 1.5252; More

GBP/USD recovers after hitting 1.4770 earlier today and break of 1.5014 minor resistance indicate that an intraday low is possibly in place. Outlook is turned neutral for the moment. Though as mentioned before, correction from 1.4557 should have completed with three waves up to 1.5534. Current recovery is expected to be limited below 1.5534 resistance and bring fall resumption. Break of 1.4557 will confirm that recent fall from 1.8668 has resumed for 161.8% projection of 2.0158 to 1.7445 from 1.8668 at 1.4278.

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. So far, the later case is in favor and break of 161.8% projection of 2.0158 to 1.7445 from 1.8668 at 1.4278 will path the way to 1.3680 key long term support (01 low).

On the upside, though, above 1.5534 will indicate that, at least, whole decline from 1.8668 has completed and a medium term bottom is possibly in place. Some medium term scale consolidation would then be seen before resuming the down trend from 2.1161.

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