GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.4369; (P) 1.4598; (R1) 1.4727; More

No change in GBP/USD's outlook. Intraday bias remains on the downside as long as 1.4724 minor resistance holds. Further decline is expected to retest 1.4350 low first. As discussed before, whether consolidation from 1.4557 is completed at 1.5722 or 1.5372 doesn't alter the medium term bearish outlook. Break of 1.4350 will confirm down trend resumption. On the upside, above 1.4724 will turn intraday outlook first but recovery should be limited below well 1.5372 resistance and bring fall 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. Fourth wave consolidation might have completed with three wave to 1.5722 or it's an expanding triangle that's completed at 1.5372. In either case, break of 1.4350 low will confirm down trend resumption to 1.3680 long term support (50% projection of 1.8668 to 1.4557 from 1.5722 at 1.3667). On the upside, though, above 1.5372 will indicate that such consolidation is still in progress but upside should still be limited by 1.5722 resistance and bring down trend resumption.

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