GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.2750; (P) 1.2775; (R1) 1.2821; More…

GBP/USD’s rebound form 1.2661 short term bottom is still in progress and intraday bias stays on the upside for further rally. But upside should be limited by 1.2956 support turned resistance to bring fall resumption. On the downside, below 1.2754 minor support will bring retest of 1.2661 low first.

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 1.4091). Current downside acceleration argues that it’s possibly resuming long term down trend. In any case, outlook will stay bearish as long as 1.3212 resistance holds. Retest of 1.1946 should be seen next.