GBP/USD Daily Outlook
Daily Pivots: (S1) 1.6399; (P) 1.6425; (R1) 1.6455; More...
No change in GBP/USD's outlook and intraday bias remains neutral for some more consolidations. Outlook stays bullish with 1.6126 support intact and another rally is expected. Above 1.6603 will target 61.8% projection of 1.4813 to 1.6259 from 1.5853 at 1.6747, which is close to 1.6476 next medium term resistance. However, considering bearish divergence condition in daily MACD, break of 1.6216 will have some bearish implications and would bring deeper fall back to retest 1.5853 support.
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 1.5853 support holds.