GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.2504; (P) 1.2554; (R1) 1.2654;

Intraday bias in GBP/USD remains mildly on the upside at this point, for retesting 1.2813 short term top. Firm break there will resume larger rise from 1.1409. On the downside, though, sustained break of 55 day EMA will argue that whole rebound from 1.1409 has completed. In this case, deeper decline would be seen to 1.2065 support for confirmation.

In the bigger picture, while the rebound from 1.1409 is strong, there is not enough evidence for rend reversal yet. Down trend from 2.1161 (2007 high) should still resume sooner or later. However, decisive break of 1.3514 should at least confirm medium term bottoming and turn outlook bullish for 1.4376 resistance first.