GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.5192; (P) 1.5266; (R1) 1.5391; More

GBP/USD's recovery from 1.5125 was limited at 1.5389 and weakens again. Break of 1.5285 minor support flips intraday bias back to the downside. As noted before, with 1.5496 resistance intact, we're still favoring the case that consolidations from 1.4786 have completed with three waves up to 1.5521 already. Below 1.5125 will bring retest of 1.4783 low. Nevertheless, break of 1.5496 resistance will invalidate this view. But in case of stronger rise, we'd expect upside to be limited by 50% retracement of 1.6456 to 1.4783 at 1.5620 and finally bring down trend resumption.

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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