GBP/USD Daily Outlook

Daily Pivots: (S1) 1.2488; (P) 1.2551; (R1) 1.2621; More

GBP/USD retreats mildly after hitting 1.2614. With 1.2468 minor support intact, further rise would be seen to 1.2705/74 resistance zone. Rise from 1.2108 is seen as part of the consolidation pattern from 1.1946. We’d expect upside to be limited by 1.2705/2774 to bring down trend resumption eventually. On the downside, below 1.2468 minor support will turn bias back to the downside for 1.2108 support first. Though, sustained break of 1.2774 will extend the rise towards 1.3444 key resistance level.

In the bigger picture, fall from 1.7190 is seen as part of the down trend from 2.1161. There is no sign of medium term reversal yet. Sustained trading below 61.8% projection of 2.1161 to 1.3503 from 1.7190 at 1.2457 will target 100% projection at 0.9532. Overall, break of 1.3444 resistance is needed to confirm medium term bottoming. Otherwise, outlook will remain bearish.

GBP/USD 4 Hours Chart

GBP/USD Daily Chart

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