GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.1950; (P) 1.2112; (R1) 1.2221; More…

GBP/USD drops to as low as 1.1827 so far. Break of 1.1946/58 key support confirms larger down trend resumption. Intraday bias stays on the downside. Next near term target is 261.8% projection of 1.3514 to 1.2905 from 1.3200 at 1.1606 next. On the upside, above 1.2129 minor resistance will turn intraday bias neutral and bring consolidations first, before staging another fall.

In the bigger picture, break of 1.1946 (2016 low) indicates that larger down trend from 2.1161 (2007 high is resuming). Next medium term target will be 61.8% projection of 1.7190 to 1.1946 from 1.3514 at 1.0273. In any case, outlook will remain bearish as long as 1.3514 resistance holds, in case of strong rebound.