GBP/USD Daily Outlook

Daily Pivots: (S1) 1.3442; (P) 1.3485; (R1) 1.3515; More

GBP/USD’s fall from 1.4376 has finally resumed and it dips to as low as 1.3409 so far. Intraday bias is back on the downside for 50% retracement of 1.1946 to 1.4376 at 1.3161 next. On the upside, break of 1.3568 resistance is needed to indicate short term bottoming. Otherwise, outlook will remain bearish in case of recovery.

In the bigger picture, current development suggests that whole medium term rebound from 1.1936 (2016 low) has completed at 1.4376 already, with trend line broken, on bearish divergence condition in daily MACD, after rejection from 55 month EMA (now at 1.4223). 38.2% retracement of 1.1936 (2016 low) to 1.4376 at 1.3448 should now be firmly taken out. Next target will be 61.8% retracement at 1.2874 and below. Outlook will stay bearish as long as 55 day EMA (now at 1.3801) holds, even in case of strong rebound.

Featured Analysis

Learn Forex Trading