GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.2904; (P) 1.2934; (R1) 1.2957; More

GBP/USD is supported by 4 hour 55 EMA and recovered. But it’s staying well below 1.3030 resistance. Intraday bias remains neutral with bearish outlook. We’re favoring the case that correction from 1.1946 is completed at 1.3267. Below 1.2852 minor support will turn intraday bias back to the downside for 1.2588 key near term support first. Decisive break of 1.2588 will confirm our view and target a test on 1.1946 low. Though, break of 1.3030 will dampen this bearish view and turn bias back to the upside for retesting 1.3267.

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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