GBP/USD Daily Outlook

GBP/USD Daily Outlook

Daily Pivots: (S1) 1.4955; (P) 1.5036; (R1) 1.5162; More...

GBP/USD's recovery from 1.4830 extends today but is still limited below 1.5198 minor support. Intraday bias remains neutral first. Break of 1.5198 will indicate that the pair has formed a short term bottom on bullish convergence condition in daily MACD. In such case, stronger rebound would be seen back to 55 days EMA (now at 1.5470). Though, below that, near term outlook stays bearish and below 1.4830 will target 1.4229 key support level next.

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. The decisive break of 1.5 psychological level affirmed this case. Focus is now on 1.4229 support and sustained break there should bring long term down trend resumption for a new low below 1.3503. However, strong rebound from 1.4229 will indicate that the whole pattern from 1.3503 is still in progress.