GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.3149; (P) 1.3175; (R1) 1.3217; More…

GBP/USD lost momentum after hitting 1.3212 as seen in 4 hour MACD. Intraday bias is turned neutral again. Overall outlook is unchanged that price actions from 1.2956 are seen as a correction. In case of another rise, upside should be limited below 1.3362 resistance to bring fall resumption eventually. On the downside, below 1.3070 minor support will bring retest of 1.2956 first. Break of 1.2956 low will resume the decline from 1.4376 to 1.2874 fibonacci level.

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 1.3362 resistance is needed to be the first indication of medium term bottoming. Otherwise, outlook will remain bearish even in case of strong rebound.