GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.4677; (P) 1.4813; (R1) 1.4923; More

GBP/USD rebound strongly today but after all it's still limited below 1.4945 resistance. Intraday outlook remains neutral for the moment. On the upside, above 1.4945 will suggest that rebound from 1.4395 is resuming but after all, we'd still expect strong resistance between 1.5066 and 100% projection of 1.3503 to 1.4984 from 1.3654 at 1.5135 and bring reversal. On the downside, below 1.4515 minor support will indicate that choppy rise from 1.4395 has completed and should bring fall resumption towards 1.4109 support.

In the bigger picture, price actions from 1.3503 are treated as consolidation to the five wave sequence from 2.0158 (1.7445, 1.8668, 1.4557, 1.5722, 1.3503). Such consolidation might have completed with three waves up to 1.5066. Even in case of another rise, we're still expecting GBP/USD to top out at 100% projection of 1.3503 to 1.4984 from 1.3654 at 1.5135. Below 1.4395 support will be another sign of topping while break of 1.4109 will confirm this bearish case. However, firm break of 1.5135 fibo target will dampen this view and set the stage for stronger rally towards resistance zone of 1.5722 and 38.2% retracement of 2.0158 to 1.3503 at 1.6045.

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