GBP/USD Daily Outlook

GBP/USD Daily Outlook

Daily Pivots: (S1) 1.6129; (P) 1.6187; (R1) 1.6226; More...

Intraday bias in GBP/USD remains neutral at this point. Above 1.6256 will extend the larger up trend. But note mild bearish divergence condition in 4 hours MACD. We'd expect strong resistance at 1.6380 to limit upside and bring topping. Below 1.6115 minor support will turn bias to the downside for 1.5893 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. It's possible that rise from 1.4813 is the fifth leg of a triangle pattern and in that case, we should see strong resistance below 1.6380 to limit upside and bring down trend resumption finally. Meanwhile, break of 1.6380 will indicate that rise from 1.4813 is the third leg of the consolidation pattern and should target 1.7043 instead.