GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.4653; (P) 1.4793; (R1) 1.4921; More

GBP/USD dives further to as low as 1.4466 today before recovering mildly. Nevertheless, intraday bias remains on the downside as long as 1.4832 minor resistance holds. The current decline from 1.5534, which is part of the whole fall from 1.8668, is expected to extend further to 161.8% projection of 2.0158 to 1.7445 from 1.8668 at 1.4278. On the upside, above 1.4832 will turn intraday outlook neutral again but recovery should be limited below 1.5334 resistance and bring decline 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. 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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