GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.3698; (P) 1.3740; (R1) 1.3799; More…

Intraday bias in GBP/USD remains neutral for the moment. Focus stays on 1.3785 resistance. Break there will turn bias to the upside for 1.3982 resistance. Firm break there will indicate that fall from 1.4248 has completed and bring retest of this high. On the downside, below 1.3601 will resume the fall from 1.4248 to 1.3482 resistance turned support next.

In the bigger picture, current development argues that rise from 1.1409 (2020 low) has completed at 1.4248, after failing 1.4376 resistance. Fall from there could either be correcting the rise form 1.1409, or starting another falling leg inside long term sideway pattern. In either case, sustained break of 1.3482 resistance turned support will target 38.2% retracement of 1.1409 to 1.4248 at 1.3164 first. Break there will pave the way to 61.8% retracement at 1.2493.

August 31, 2021 at 12:53AM
ActionForex.com
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