GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.2817; (P) 1.2857; (R1) 1.2930; More….

GBP/USD’s recovery from 1.2773 extends today but upside is kept below 1.2958 resistance so far. Intraday bias remains neutral and more consolidation might be seen. Further decline is in favor with 1.2958 intact. On the downside, break of 1.2773 will resume the fall from 1.3217 to retest 1.2391 low. On the upside, however, break of 1.2958 resistance will turn bias to the upside for retesting 1.3217 instead.

In the bigger picture, the rejection by 1.3174 key resistance revived the original view on GBP/USD. That is, decline from 1.4376 is possibly resuming long term down trend from 2.1161 (2007 high). Firm break of 1.2391 will solidify this bearish case and target 1.1946 (2016 low). However, decisive break of 1.3174 will invalidate this bearish case again and turn outlook bullish.

Featured Analysis

Learn Forex Trading