GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.3120; (P) 1.3143; (R1) 1.3183; More….

With 4 hour MACD crossed below signal line, a temporary top is in place at 1.3166. Intraday bias in GBP/USD is turned neutral for consolidation. Downside of retreat should be contained well above 1.2827 support to bring rally resumption. On the upside, break of 1.3166 will resume the rise from 1.1958 to 1.3381 resistance next.

In the bigger picture, rise from 1.1958 medium term bottom 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.