GBP/USD Daily Outlook

Daily Pivots: (S1) 1.6051; (P) 1.6084; (R1) 1.6147; More...

A temporary low is in place at 1.6009 and intraday bias in GBP/USD is turned neutral first. But again, rise from 1.5827 should have completed at 1.6380 already. Deeper decline is expected as long as 1.6173 minor resistance holds. Below 1.6009 will target retest 1.5827 key support level. On the upside, above 1.6173 will flip bias back to the upside for retesting 1.6380 instead.

In the bigger picture, price actions from 1.3503 (2009 low) are treated as consolidations to long term down trend from 2.1161, no change in this view. There are various interpretations on the pattern from 1.3503 but after all, the important point is that it isn't finished yet. Prior break of 1.6300 resistance suggests that another rising leg is now in progress for 1.7043 and above to extend the consolidation pattern. But we'd expect strong resistance at 50% retracement of 2.1161 to 1.3503 at 1.7332 to limit upside. Meanwhile, break of 1.5827 support (50% retracement of 1.5268 to 1.6380 at 1.5824) will turn focus back to 1.5268 support instead.

IMOH, Clement I
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