GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.2889; (P) 1.2920; (R1) 1.2941; More….

Intraday bias in GBP/USD stays neutral as sideway consolidation from 1.3012 is extending. Further rally is expected as long as 1.2768 support holds. Break of 1.3012 will resume whole rally from 1.1958. However, break of 1.2768 will bring deeper fall back to 1.2582 resistance turned support.

In the bigger picture, a medium term bottom was formed at 1.1958, ahead of 1.1946 (2016 low). At this point, rise from 1.1958 is seen as the third leg of consolidation from 1.1946. Further rise would be seen back towards 1.4376 resistance. For now, this will remain the favored case as long as 1.2582 resistance turned support holds. However, firm break of 1.2582 will turn focus back to 1.1946 low.