GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.4968; (P) 1.5079; (R1) 1.5285; More

GBP/USD's rise is still expected to continue with 1.4873 support intact. However, there is no change in the view that it's merely a correction in larger decline from 1.6875. Hence, strong resistance should be seen between 38.2% retracement of 1.6875 to 1.4230 at 1.5240 and channel resistance at 1.5306 and bring reversal. Below 1.4873 support will indicate that such recovery from 1.4230 has possibly completed and will turn bias back to the downside for retesting this low.

In the bigger picture, our bearish view remains unchanged. Fall from 1.7043 is tentatively treated as resumption of the whole down trend from 2007 high of 2.1161. Such fall should target 61.8% projection of 2.1161 to 1.3503 from 1.7043 at 1.2310 after taking out 1.3503 low. On the upside, break of 1.5521 resistance is needed to be the first signal of medium term bottoming. Otherwise, outlook will remain bearish.