GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.1698; (P) 1.1836; (R1) 1.2032; More…

GBP/USD recovers further today but stays below 1.2129 resistance. Intraday bias remains neutral for the moment. Upside should be limited by 1.2129 minor resistance to bring fall resumption. On the downside, break of 1.1409 will resume larger down trend. However, firm break of 1.2129 will dampen immediate bearish case and bring stronger rebound.

In the bigger picture, down trend from 2.1161 (2007 high) has just resumed. 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.