GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.2995; (P) 1.3012; (R1) 1.3035; More…

GBP/USD rebounds strongly today but it’s held below 1.3174 resistance so far. Intraday bias is turned neutral first. On the downside, break of 1.2977 will target 1.2905 low. break there will extend the correction from 1.3514. On the upside, break of 1.3174 resistance will turn bias to the upside for 1.3284 resistance instead.

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