GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.2769; (P) 1.2803; (R1) 1.2832; More

GBP/USD continues to lose downside momentum as seen in 4 hour MACD. But with 1.2915 resistance intact, deeper decline is expected. Current fall from 1.3267 should be targeting to 1.2588 key near term support. As noted before, we’re favoring the case that correction from 1.1946 is completed at 1.3267. Decisive break of 1.2588 will confirm our view and target a test on 1.1946 low. Though, break of 1.2915 will indicate short term bottoming and bring stronger rebound.

In the bigger picture, overall, price actions from 1.1946 medium term low are seen as a corrective pattern. While further rise cannot be ruled out, larger outlook remains bearish as long as 1.3444 key resistance holds. Down trend from 1.7190 (2014 high) is expected to resume later after the correction completes. And break of 1.2588 will indicate that such down trend is resuming.

GBP/USD 4 Hours Chart

GBP/USD Daily Chart

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