GBP/USD Daily Outlook
Intraday bias in GBP/USD remains neutral for the moment. While the overall development raises the chance of topping at 1.6995, the pair is still staying above 1.6819 support and another rally could still be seen. Above 1.6995 will target 1.7043 key resistance. We’ll start to be cautious on topping above there. Meanwhile, break of 1.6819 will be an early sign of reversal and will turn bias to the downside for 1.6654 support first.
In the bigger picture, price actions from 1.3503 (2009 low) are treated as consolidations to long term down trend from 2.1161. Rise from 1.4813 is viewed as the third leg and is still in progress for 1.7043 and above. But we’d expect strong resistance from 50% retracement from 2.1161 to 1.3503 at 1.7332 to limit upside and bring reversal. Considering bearish divergence condition in daily MACD, break of 1.6465 will argue that rise from 1.4813 is likely finished and will turn outlook bearish for 1.5853 support and below.