GBP/USD Daily Forecast

Daily Pivots: (S1) 1.4024; (P) 1.4128; (R1) 1.4220;

GBP/USD's recovery from 1.3956 is still in progress and reaches as high as 1.4288 in early European session. Intraday outlook remains neutral for the moment with focus on 1.4363 resistance. As long as this resistance holds, fall from 1.4984 might still extend further. Below 1.3956 will target a rest of 1.3503 low. However, note that break of 1.4363 will argue that decline from 1.4984 has completed and flip intraday bias back to the upside. Further break of 1.4660 will suggest that rebound from 1.3503 is resuming for 1.5722 medium term resistance instead.

In the bigger picture, a medium term bottom is in place at 1.3503 after GBP/USD completed the five wave sequence from 2.0158 (1.7445, 1.8668, 1.4557, 1.5722, 1.3503). Price actions from 1.3503 is treated as correction/consolidation in the larger down trend from 2.1161. It's uncertain whether such correction from 1.3503 is developing into sideway consolidation below 1.5722 or a stronger rebound. Nevertheless, as long as 1.3503 low holds, such consolidation is still in favor to extend further with another rise before completion. Decisive break of this support is needed to confirm down trend resumption.

Based on ActionForex.com Technical Outlook