GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.2235; (P) 1.2263; (R1) 1.2314; More

Intraday bias in GBP/USD stays on the upside at this point. Rebound from 1.2036 short term bottom is in progress for near term channel resistance (now at 1.2338). Firm break there will target 38.2% retracement of 1.3141 to 1.2036 at 1.2458 next. Nevertheless, break of 1.2161 minor support will revive near term bearishness and bring retest of 1.2036 low.

In the bigger picture, fall from 1.3141 medium term top could still be a correction to up trend from 1.0351 (2022 low) only. But risk of complete trend reversal is rising. Sustained break of 38.2% retracement of 1.0351 to 1.3141 at 1.2075 will pave the way to 61.8% retracement at 1.1417. For now, risk will stay on the downside as long as 55 D EMA (now at 1.2440) holds, in case of rebound.

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