GBP/USD Daily Forecast

Daily Pivots: (S1) 1.4646; (P) 1.4730; (R1) 1.4852;

GBP/USD's rebound from 1.4395 extends further to as high as 1.4945 today so far and is back pressing trend line support turned resistance. At this point, intraday bias remains on the upside as long as 1.4734 minor support holds and further rise could still be seen. But after all, we'd expect strong resistance between 1.5066 and 100% projection of 1.3503 to 1.4984 from 1.3654 at 1.5135 and bring reversal. On the downside, below 1.4734 will turn intraday outlook neutral first. Below 1.4515 will indicate that fall from 1.5066 is possibly resuming for 1.4109 support.

In the bigger picture, price actions from 1.3503 are treated as consolidation to the five wave sequence from 2.0158 (1.7445, 1.8668, 1.4557, 1.5722, 1.3503). Such consolidation might have completed with three waves up to 1.5066. Even in case of another rise, we're still expecting GBP/USD to top out at 100% projection of 1.3503 to 1.4984 from 1.3654 at 1.5135. Below 1.4395 support will be another sign of topping while break of 1.4109 will confirm this bearish case. However, firm break of 1.5135 fibo target will dampen this view and set the stage for stronger rally towards resistance zone of 1.5722 and 38.2% retracement of 2.0158 to 1.3503 at 1.6045.

Based on ActionForex.com Technical Outlook