Daily Pivots: (S1) 1.5907; (P) 1.6001; (R1) 1.6169;
GBP/USD's strong rebound from 1.5829 and the break of 1.6064 resistance indicates that a short term bottom is formed. Bias is flipped to the upside for stronger rebound towards 1.6408 resistance next. On the downside, though, below 1.6047 minor support will turn intraday bias neutral again and bring retreat first.
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, break of 1.6408 resistance will indicate that fall from 1.6875 has completed and GBP/USD is still bounded in medium term range of 1.5706/7043. In other words, whole medium term rise from 1.3503 might not be finished yet and another rise could still be seen to 1.7332/8236 (50% and 61.8% retracement of 2.1161 to 1.3503) before completion.
Economic Indicators Update
|07:00||GBP||Nationwide House Prices M/M Dec||0.4%||0.30%||0.50%|
|13:30||USD||Initial Jobless Claims||455K||452K|
|15:30||USD||Natural Gas Storage||-143B||-166B|