GBP/USD Daily Outlook

GBP/USD Daily Outlook

Daily Pivots: (S1) 1.6603; (P) 1.6626; (R1) 1.6665; More...

Intraday bias in GBP/USD remains neutral for the moment as consolidation from 1.6822 might extend further. In case of deeper pull back, we'd expect strong support from 50% retracement of 1.6251 to 1.6822 at 1.6537 to contain downside to complete the consolidation and bring rebound. On the upside, break of 1.6785 will extend larger rally from 1.4813 through 1.6822 towards 1.7043 key resistance.

In the bigger picture, price actions from 1.3503 (2009 low) are treated as consolidations to long term down trend from 2.1161. Rise from 1.4813 is viewed as the third leg and is still in progress for 1.7043 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. Considering bearish divergence condition in daily MACD, break of 1.6251 will argue that rise from 1.4813 is likely finished and will turn outlook bearish.