GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.2953; (P) 1.3019; (R1) 1.3079; More…

GBP/USD’s strong recovery and break of 1.3082 suggests that a temporary low is formed. Intraday bias is turned neutral to bring some consolidation Stronger recovery could be seen. But upside should be limited well below 1.3362 resistance to bring fall resumption. Break of 1.2956 will resume the fall fro 1.4376 to 61.8% projection of 1.4376 to 1.3203 from 1.3362 at 1.2637 next.

In the bigger picture, whole medium term rebound from 1.1946 (2016 low) should have completed at 1.4376 already, after rejection from 55 month EMA (now at 1.4179). Fall from 1.4376 should extend to 61.8% retracement of 1.1946 (2016 low) to 1.4376 at 1.2874 next. Decisive break of 1.2874 will raise the chance of long term down trend resumption through 1.1946 low. On the upside, break of 1.3471 resistance is needed to be the first indication of medium term bottoming. Otherwise, outlook will remain bearish even in case of strong rebound.