GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.2436; (P) 1.2473; (R1) 1.2524; More

GBP/USD’s break of 1.2434 support confirms short term topping at 1.2678. Considering bearish divergence condition in D MACD, it’s probably corrective whole up trend from 1.0351. Intraday bias is now on the downside. Sustained trading below 55 D EMA (now at 1.2392) will affirm this case, and pave the way to 1.1801 cluster support (38.2% retracement of 1.0351 to 1.2678 at 1.1789). On the upside, above 1.2545 minor resistance will turn intraday bias neutral first.

In the bigger picture, as long as 1.1801 support holds, rise from 1.0351 medium term bottom (2022 low) is expected to extend further. Sustained break of 61.8% retracement of 1.4248 (2021 high) to 1.0351 at 1.2759 will add to the case of long term bullish trend reversal. However, firm break of 1.1801 will indicate rejection by 1.2759, and bring deeper decline, even as a correction.

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