GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.4931; (P) 1.4999; (R1) 1.5064; More

Intraday bias in GBP/USD remains on the downside for the moment. Recovery from 1.4783 might have completed at 1.5194 already after hitting 4 hours 55 EMA. Further fall should be seen to retest 1.4783 low first. Break there will confirm fall resumption and should target 200% projection of 1.6875 to 1.5829 from 1.6456 at 1.4364 next. On the upside, above 1.5026 will delay the bearish case and bring more consolidations. But upside should be limited by 38.2% retracement of 1.6456 to 1.4783 at 1.5422 and bring fall 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.

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