GBP/USD Today Forecast

Daily Pivots: (S1) 1.5192; (P) 1.5270; (R1) 1.5423;

While GBP/USD retreated sharply from 1.5814, after hitting channel resistance, downside is still held above 1.5448 minor support. Hence, further rise is still in favor and above 1.5814 will target 1.6045/50 cluster resistance to complete whole rally from 1.4395. However, break of 1.5445 support will suggest that a short term top is formed and will bring consolidation above 1.5054 support before resuming recent rally.

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