GBP/USD Daily Outlook
Daily Pivots: (S1) 1.6293; (P) 1.6325; (R1) 1.6373; More...
GBP/USD's rally is still in progress and intraday bias remains on the upside for 1.6380 key resistance level. We'd stay cautious on strong resistance there to bring reversal. Below 1.6257 minor support will indicate short term topping and turn bias back to the downside. However, decisive break of 1.6380 will likely have long term trend line resistance taken out too. In that case, GBP/USD would target 1.6746 resistance next.
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.