GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.5628; (P) 1.5675; (R1) 1.5757; More.

GBP/USD continues to stay in range of 1.5561/5779 and intraday bias remains neutral for the moment. On the upside, break of 1.5779 will resume the rebound from 1.5422 and target 1.5887 resistance. Break of 1.5887 will confirm completion of fall from 1.6165 and would target a test on this high. Nonetheless, there is no confirmation of reversal with 1.5887 resistance intact. Break of 1.5561 minor support will indicate that rebound from 1.5422 has completed and will flip bias back to the downside to extend the fall from 1.6165 to below 1.5422.

In the bigger picture, no change in the view that price actions from 1.3503 are treated as consolidations to long term down trend from 2.1161. At this point, we're favoring the case that such consolidation is either finished with three waves to 1.6746, or five waves as a triangle at 1.6165. Break of 1.5271 support will affirm either case and should target 1.4229 key support. Decisive break there should extend the long term down trend through 1.3503 low. Meanwhile, strong rebound ahead of 1.4229, or a break of 1.6165, will dampen the immediate bearish view and extend the consolidation from 1.3503 instead.

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