GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.3294; (P) 1.3358; (R1) 1.3396; More….

GBP?USD’s corrective from 1.3514 extends lower today but stays above 1.3050 support. Intraday bias remains neutral first. We’d still expect 1.3050 to hold to bring rise resumption. On the upside, above 1.3514 will extend the rally from 1.1958 to 100% projection of 1.2195 to 1.3012 from 1.2827 at 1.3644 first. Break will target 161.8% projection at 1.4149 next. However, firm break of 1.3050 will indicate short term topping and bring deeper fall to 1.2827 support, and possibly below.

In the bigger picture, rise from 1.1958 medium term bottom is on track to retest 1.4376 key resistance. Reactions from there would decide whether it’s in consolidation from 1.1946 (2016 low). Or, firm break of 1.4376 will indicate long term bullish reversal. In any case, for now, outlook will stay bullish as long as 1.2827 support holds.