GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.2713; (P) 1.2732; (R1) 1.2759; More…

GBP/USD’s strong rally and firm break of 1.2816 support confirms resumption of rise from 1.2298. Intraday bias is back on the upside for 1.2892 resistance. Decisive break there will strengthen the case that correction from 1.3141 has completed, and bring further rally to retest this high. On the downside, break of 1.2687 support is needed to indicate short term topping. Otherwise, outlook will stay bullish in case of retreat.

In the bigger picture, price actions from 1.3141 medium term top are seen as a corrective pattern. Fall from 1.2892 is seen as the third leg which might have completed already. Break of 1.2892 resistance will argue that larger up trend from 1.0351(2022 low) is ready to resume through 1.3141. Meanwhile, break of 1.2445 support will extend the corrective pattern with another decline instead.

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