GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.3706; (P) 1.3786; (R1) 1.3831; More….

Intraday bias in GBP/USD remains on the downside at this point. Correction from 1.4240 is in progress for 38.2% retracement of 1.2675 to 1.4240 at 1.3642. We’d expect strong support from there to bring rebound. On the upside, break of 1.4000 resistance will bring retest of 1.4240. However, sustained break of 1.3564 will bring deeper fall to 1.3482 key resistance turned support.

In the bigger picture, rise from 1.1409 medium term bottom is in progress. Further rally would be seen to 1.4376 resistance and above. Decisive break there will carry larger bullish implications and target 38.2% retracement of 2.1161 (2007 high) to 1.1409 (2020 low) at 1.5134. On the downside, break of 1.3482 resistance turned support is needed to be first indication of completion of the rise. Otherwise, outlook will stay cautiously bullish even in case of deep pullback.