GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.5328; (P) 1.5408; (R1) 1.5471; More.

GBP/USD's break of 1.5326 indicates that fall from 1.5997 has resumed. Intraday bias is back to the downside and further fall should be seen to 1.5123 cluster support (50% retracement of 1.4230 to 1.5997 at 1.5114). Decisive break there will confirm our bearish view that rise from 1.4230 has finished at 1.5997 already and will target a retest on this low. However, break of 1.5488 resistance will argue that fall from 1.5997 is possibly over and will turn bias back to the upside for resting this high instead.

In the bigger picture, price actions from 1.3503 are viewed as consolidation to fall from 2.1161 only with rise from 1.4230 as the third leg. In any case, a break of 1.4230 support will indicate that the consolidation is completed and down trend from 2.1161 is resuming for another low below 1.3503. In case of another rise, we'd expect strong resistance between 1.7043 and 50% retracement of 2.1161 to 1.3503 at 1.7332 and finally bring long term down trend resumption.

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