GBPUSD Outlook |
Written by ActionForex.com |
Mar 06 13 14:03 GMT
GBP/USD Mid-Day Outlook
Daily Pivots: (S1) 1.5081; (P) 1.5139; (R1) 1.5185; More...
GBP/USD weakens mildly but stays in tight range above 1.5 psychological level. Intraday bias remains neutral for the moment and some more sideway trading could be seen. But still, as long as 1.5221 minor resistance holds, near term outlooks stays bearish and deeper decline is expected. Sustained trading below 1.5 will extend the whole fall from 1.6380 to 1.4229 key support level next. Though, break of 1.5221 will indicate short term bottoming and bring stronger rebound.
In the bigger picture, price actions from 1.3503 (2009 low) are treated as consolidations to long term down trend from 2.1161. The break of 1.5268 support argues that such consolidation is completed with five waves, as a triangle pattern, at 1.6380 already. Break of 1.4229 support should add much more credence to the case that whole down trend from 2.1161 is resuming for a new low below 1.3503. We'll continue to see how GBP/USD reacts at around 1.5 psychological level to judge the odds of this bearish case again.
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