GBP/USD Daily Forecast

Daily Pivots: (S1) 1.6333; (P) 1.6426; (R1) 1.6582;

While GBP/USD's rebound from 1.6459 might extend further, upside is still expected to be limited below 1.6744 resistance. below 1.6459 minor support will flip intraday bias back to the downside for 1.6250 support. Break there will confirm the bearish case that rebound from 1.5706 has completed already and will target a retest of this resistance next. However, a break above 1.6744 will invalidate our view and turn focus back to 1.6875/7043 resistance zone.

In the bigger picture, current development shifts favors back to the case that medium term rebound from 1.3503, which is is treated as a correction to down trend from 2.1161, has completed at 1.7043. Focus now turns to 1.5706 cluster support (38.2% retracement of 1.3503 to 1.7043 at 1.5691) for confirmation. Break there will argue that whole down trend form 2.1161 is likely resuming for a new low below 1.3503. On the upside, however, break of 1.7043 will indicate that rise from 1.3503 is still in progress to resistance zone of 1.7332/8236 (50% and 61.8% retracement of 2.1161 to 1.3503) before completion.

Based on ActionForex.com Technical Outlook