GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.4505; (P) 1.4622; (R1) 1.4815; More

Still not change in GBP/USD's outlook with 1.4766 resistance intact. Further decline is expected and below 1.4350 will bring fall to long term support at 1.3680 (50% projection of 1.8668 to 1.4557 from 1.5722 at 1.3667). On the upside, though, above 1.4766 will indicate that fall from 1.5722 is possibly completed and strong recovery could then be seen. However, upside should be limited below 1.5722 resistance and bring down trend resumption.

In the bigger picture, interpretations of the fall from 2.0158 is that first wave has completed at 1.7445, second at 1.8668, third at 1.4557 and fourth wave consolidation should have completed at 1.5722. The current fall from 1.5722 might represent the last leg in this five wave sequence and is targeting mentioned 1.3680 (50% projection of 1.8668 to 1.4557 from 1.5722 at 1.3667). On the upside, though, break of 1.5227 resistance will be the first alert that such medium term fall from 2.0158 has completed and a medium term bottom is formed. Some large scale rebound should be seen in such case.

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