GBP/USD Daily Outlook

Daily Pivots: (S1) 1.5350; (P) 1.5442; (R1) 1.5519; More.

No change in GBP/USD's outlook as it's still bounded in range above 1.5343 short term bottom. More consolidations could be seen. Another rise cannot be ruled out as such consolidations continue but strong resistance should be seen at near term falling trend line (now at 1.5729) and bring fall resumption. Below 1.5343 will target 1.5296 key cluster support (50% retracement of 1.4230 to 1.6298 at 1.5264).

In the bigger picture, price actions from 1.3503 (2009 low) are treated as consolidation to long term down trend from 2007 high of 2.1161. Rise from 1.4230 is treated as the third leg of such consolidation and with 1.5296 support intact, such rise could still continue for 1.7043 resistance. But after all, strong resistance should be seen between 1.7043 and 50% retracement of 2.1161 to 1.3503 at 1.7332 to limit upside. On the downside, break of 1.4230 support will be the first signal of down trend resumption and will turn focus to 1.3503 low for confirmation.

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