GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.3260; (P) 1.3278; (R1) 1.3310; More…

GBP/USD’s break of channel resistance suggests upside acceleration. Intraday bias stays on the upside for retesting 1.3482. Decisive break there will resume whole rise from 1.1409. Further rally should be seen to 61.8% projection of 1.1409 to 1.3482 from 1.2675 at 1.3956 next. On the downside,break of 1.3195 minor support is needed to indicate short term topping. Otherwise, outlook will stay cautiously bullish in case of retreat.

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In the bigger picture, focus stays on 1.3514 key resistance. Decisive break there should also come with sustained trading above 55 month EMA (now at 1.3308). That should confirm medium term bottoming at 1.1409. Outlook will be turned bullish for 1.4376 resistance and above. Nevertheless, rejection by 1.3514 will maintain medium term bearishness for another lower below 1.1409 at a later stage.