Fri, Oct 07, 2022 @ 05:56 GMT

GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.2039; (P) 1.2088; (R1) 1.2129; More

Intraday bias in GBP/USD is turned neutral with current recovery. Outlook is unchanged that rebound from 1.1759 should have completed after hitting 55 day EMA. On the downside, below 1.2022 will bring deeper fall to retest 1.1759 low. On the upside, break of 1.2292 will invalidate this view and resume the rebound towards 1.2405 resistance instead.

In the bigger picture, fall from 1.4248 (2018 high) could be a leg inside the pattern from 1.1409 (2020 low), or resuming the longer term down trend. Deeper decline is expected as long as 1.2666 resistance holds. Next target is 1.1409 low. However, firm break of 1.2666 will bring stronger rise back to 55 week EMA (now at 1.2925).

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