Daily Pivots: (S1) 1.6102; (P) 1.6172; (R1) 1.6239

Intraday bias in GBP/USD remains neutral as sideway consolidation from 1.6077 is still in progress. Nevertheless, we'd continue to expect another fall as long as 1.6284 resistance holds. As discussed before, corrective rise from 1.5829 should have completed with three waves up to 1.6456 already and whole decline from 1.6875 should be resuming. Break of 1.5829 will confirm this bearish case and target 1.5706 key cluster support. On the upside, though, above 1.6284 minor resistance will delay the bearish view and turn focus back 1.6456 resistance.

In the bigger picture, we're still favoring the bearish case that medium term rebound from 1.3503, which is treated as a correction to down trend from 2.1161, has completed at 1.7043. Firm break of 1.5706 cluster support (38.2% retracement of 1.3503 to 1.7043 at 1.5691) will confirm this case and indicate that whole down trend from 2.1161 is likely resuming for a new low below 1.3503. However, note that break of 1.6456 resistance will in turn shift favor to the case that recent price actions from 1.7043 are merely developing into consolidations to the larger rise from 1.3503. That is, 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.

GBP/USD