GBP/USD Today Forecast

Daily Pivots: (S1) 1.6326; (P) 1.6398; (R1) 1.6449;

Intraday outlook in GBP/USD remains neutral as the pair continues to stay in range of 1.6265 and 1.6582. Nevertheless, with 1.6265 support intact, further rise is still in favor in GBP/USD. Above 1.6582 will target a retest of 1.6742 high first. Break will confirm medium term rally resumption. On the downside, however, considering bearish divergence condition in 4 hours MACD, break of 1.6265 will indicate that rebound from 1.5983 has possibly completed and will bring deeper fall to medium term trend line support (now at 1.6091).

In the bigger picture, there is no change in the broader outlook that rise from 1.3654 is the third leg of correction that started at 1.3503, which corrects the whole down trend from 2.1161. Such correction should be near to an end, if not completed. While another rise cannot be ruled out, upside is still expected to be limited below 1.7332 as the correction is expected to conclude in resistance zone of 1.6428/7332 (38.2% and 50% retracement of 2.1161 to 1.3503). Decisive break of 1.5801 support will be an important signal that indicates such consolidation is already finished and will turn medium term outlook bearish for a retest of 1.3503 low next.

Based on ActionForex.com Technical Outlook