GBP/USD Daily Outlook

Daily Pivots: (S1) 1.9653; (P) 1.9740; (R1) 1.9816; More

Cable continues to trade in established range above 1.9653 low today. As discussed before, with an intraday low in place at 1.9653, further consolidation is expected to follow with risk another another recovery to 1.9850 resistance. But still, upside of the recovery is expected to be limited below 2.0099 resistance and bring another fall. The current fall from 2.1161 high is still expected to extend further to key support zone of 1.9554/1.9652.

In the bigger picture, prior break of medium term rising channel and 2.0 psychological support at least indicate that rise from 1.8090 has already completed at 2.1161. With 55 weeks EMA taken out too, it's likely that the medium term up trend from 1.7047 has also completed. Focus is now on mentioned 1.9554/1.9652 cluster support (04 high at 1.9554 and 38.2% retracement of 1.7047 to 2.1161 at 1.9589). Firm break will confirm such case and bring deeper decline to 61.8% retracement at 1.8619.

On the upside, above 2.0099 resistance is needed to be the first alert that fall from 2.1161 has completed. In such case, the short term falling channel resistance (now at 2.0220) will be back into focus.