GBP/USD Daily Forecast

Daily Pivots: (S1) 1.5607; (P) 1.5749; (R1) 1.5983;

GBP/USD resumed rally after brief retreat and reached as high as 1.5896 so far today. Intraday bias remains on the upside and current rally is still expected to extend to 1.6045/50 cluster resistance before making a top there. On the downside, below 1.5514 will turn intraday outlook neutral first and bring pull back. But current rise is still expected to continue as long as pull back is contained above 1.5054 support.

In the bigger picture, current rise from 1.3654 is treated as part of the consolidation that started at 1.3503, which is correcting whole medium term decline from 2.0158. Decisive break of 1.5371 resistance indicates that stronger rally is underway towards next key cluster resistance of 38.2% retracement of 2.0158 to 1.3503 at 1.6045 and 161.8% projection of 1.3503 to 1.4984 from 1.3654 at 1.6050. Nevertheless, we'd expect such consolidation to conclude there and bring medium term down trend resumption. Below 1.5054 support will now be the first alert that rise from 1.3654 has completed.

Based on ActionForex.com Technical Outlook