GBP/USD Daily Outlook

GBP/USD Daily Outlook

Daily Pivots: (S1) 1.5548; (P) 1.5580; (R1) 1.5603; More...

Intraday bias in GBP/JPY remains neutral for the moment. We'd continue to be cautious on strong resistance from 1.5751 limit upside and bring reversal. Below 1.5422 minor support will turn bias back to the downside. Break of 1.5101 will confirm completion of rise from 1.4813 and would bring retest of this support. However, sustained break of 1.5751 will have larger bullish implications and would turn focus back to 1.6380 resistance.

In the bigger picture, price actions from 1.3503 (2009 low) are treated as consolidations to long term down trend from 2.1161 and could have completed as a triangle pattern at 1.6380. We're still preferring this view for the moment. Focus is on 1.4229 support and sustained break there should bring long term down trend resumption for a new low below 1.3503. However, break of 1.5751 resistance will delay the bearish case and extend the consolidation from 1.3503.