GBP/USD Daily Outlook

GBP/USD Daily Outlook

Daily Pivots: (S1) 1.6670; (P) 1.6705; (R1) 1.6755; More...

GBP/USD's consolidation from 1.6822 is still in progress and intraday bias remains neutral. The current consolidation could extend further. On the downside, below 1.6583 will bring deeper fall to 61.8% retracement of 1.6251 to 1.6822 at 1.6469. Meanwhile, decisive break of 1.6822 will confirm resumption of larger up trend from 1.4813 to 1.7043 key resistance next.

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.