GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.5644; (P) 1.5690; (R1) 1.5734; More.

GBP/USD's rally is still in favor to continue with 1.5527 minor support intact and focus remains on 1.5779 resistance. Decisive break of 1.5779 resistance will indicate that the whole decline from 1.6746 in GBP/USD is over and should bring further rally to 1.6165 resistance and above. Though, failure from 1.5779, followed by break of 1.5527 will indicate completion of the rebound from 1.5234 and should flip bias back to the downside for retesting this low.

In the bigger picture, 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. Deeper decline is in favor to 1.4229 key support and 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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