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GBP/USD Daily Outlook
Daily Pivots: (S1) 1.6627; (P) 1.6664; (R1) 1.6708; More...
Intraday bias in GBP/USD remains neutral for the moment. We'd still expect strong support from 38.2% retracement of 1.6251 to 1.6822 at 1.6604 to contain downside to complete the pull back from 1.6822. Above 1.6725 will turn bias back to the upside for 1.6822 high. Break will extend the up trend from 1.4813 to 1.7043 key resistance next. Though, further decline will bring deeper correction to 61.8% retracement at 1.6469 instead.
In the bigger picture, price actions from 1.3503 (2009 low) are treated as consolidations to long term down trend from 2.1161. Current development suggests that it's still in progress with rise from 1.4813 as the third leg. Rally from there would target 1.7043 resistance and above. But we'd expect strong resistance from 50% retracement from 2.1161 to 1.3503 at 1.7332 to limit upside and bring reversal. We'd hold on to this view as long as 1.6251 support holds.