GBP/USD Daily Outlook

Daily Pivots: (S1) 1.2922; (P) 1.2954; (R1) 1.2985; More….

A temporary low is formed at 1.2905, after drawing support from 38.2% retracement of 1.1958 to 1.3514 at 1.2920. Intraday bias in GBP/USD turned neutral first. On the upside, break of 1.3079 minor resistance will suggest that the pull back from 1.3514 has completed. Intraday bias will be turned back to the upside for retesting 1.3514. On the downside, sustained break of 1.2905 will pave the way to 61.8% retracement at 1.2552.

In the bigger picture, rise from 1.1958 medium term bottom expected to extend higher 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 1.2582 resistance turned support holds.