GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.6047; (P) 1.6151; (R1) 1.6211; More...

Intraday bias in GBP/USD remains on the downside for the moment. Rise from 1.5827 should have finished at 1.6380 and deeper fall could be seen to retest this 1.5827 support. On the upside, above 1.6173 minor resistance will turn bias back to the upside for a retest on 1.6380 resistance.

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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