GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.3125; (P) 1.3168; (R1) 1.3251; More…

Intraday bias in GBP/USD is turned neutral with today’s sharp fall. On the upside, above 1.3209 will turn bias to the upside for 1.3284 resistance. Break will pave the way to retest 1.3514 high. On the downside, break of 1.2977 will bring a test on 1.2905 support next. Overall, price actions form 1.3514 are seen as developing into a corrective pattern, which might extend further, or even deeper.

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.