GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.3650; (P) 1.3705; (R1) 1.3735; More….

No change in GBP/USD’s outlook as correction from 1.4240 might extend lower. We’d expect strong support from 38.2% retracement of 1.2675 to 1.4240 at 1.3642 to bring rebound. On the upside, above 1.3800 minor resistance will turn intraday bias neutral first. Further break of 1.4000 resistance will bring retest of 1.4240 high. 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.