GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.4981; (P) 1.5024; (R1) 1.5102; More

GBP/USD's recovery from 1.4783 is still in progress and stronger rise might be seen to 1.5194 and above. Nevertheless, upside should be limited by 38.2% retracement of 1.6456 to 1.4783 at 1.5422 and bring fall resumption. On the downside, break of 1.4783 will confirm that recent down trend has resumed and should target 200% projection of 1.6875 to 1.5829 from 1.6456 at 1.4364 next.

In the bigger picture, there is no change in our bearish view. That is, medium term rebound from 1.3503, which is treated as a correction to down trend from 2.1161, has completed at 1.7043 already. Fall from there is tentatively treated as resumption of the down trend from 2.1161 and should target a new low below 1.3503. On the upside, break of 1.5814 resistance is needed to invalidate this view. Otherwise, outlook will remain bearish.

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