Daily Pivots: (S1) 1.5949; (P) 1.5982; (R1) 1.6032; More

GBP/USD is still bounded in choppy sideway trading above 1.5919 and intraday bias remains neutral for the moment. Consolidations from 1.5919 might extend further and another rise to 4 hours 55 EMA (now at 1.6088) cannot be ruled out. But after all, upside should be limited well below 1.6408 resistance and bring fall resumption. Current decline is still expected to continue to 100% projection of 1.6720 to 1.6166 from 1.6408 at 1.5854 first and then 1.5706 cluster support next.

In the bigger picture, we're still favoring the bearish case that medium term rebound from 1.3503, which is is treated as a correction to down trend from 2.1161, has completed at 1.7043. Focus now turns to 1.5706 cluster support (38.2% retracement of 1.3503 to 1.7043 at 1.5691) for confirmation. Break there will argue that whole down trend form 2.1161 is likely resuming for a new low below 1.3503. On the upside, however, break of 1.7043 will indicate that rise from 1.3503 is still in progress to resistance zone of 1.7332/8236 (50% and 61.8% retracement of 2.1161 to 1.3503) before completion.


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