GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.5294; (P) 1.5359; (R1) 1.5421; More.

Intraday bias in GBP/USD remains neutral for the moment with a temporary bottom in place at 1.5296. At this point, we'd still favor another fall as long as 1.5596 minor resistance holds. Below 1.5296 will target 1.5123 cluster support (50% retracement of 1.4230 to 1.5997 at 1.5114). However, decisive break of 1.5596 will indicate that decline from 1.5597 is completed and will bring stronger rebound to retest 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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