GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.6154; (P) 1.6254; (R1) 1.6349; More

Intraday bias in GBP/USD remains on the downside with 1.6265 minor resistance intact. Fall from 1.6622 is resuming whole decline from 1.7043 and should extend further towards 1.5983 key support next. On the upside, above 1.6265 will turn intraday outlook neutral and bring consolidation. But recovery is expected to be limited below 1.6622 resistance and bring fall resumption.

In the bigger picture, we're still preferring the case that medium term correction from 1.3503 has completed at 1.7043 already, on bearish divergence condition in daily MACD and RSI. Break of 1.5983 will confirm this case and will possibly bring resumption of medium term down trend from 2.1161 to 1.3503 low and beyond. On the upside, in case of another rise above 1.7043, we'd continue to look for reversal signal as we expect the correction from 1.3503 to conclude inside resistance zone of 1.6428/7332 (38.2% and 50% retracement of 2.1161 to 1.3503).

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