GBPUSD Outlook |
Written by ActionForex.com |
Nov 07 16 03:02 GMT
Daily Pivots: (S1) 1.2456; (P) 1.2507; (R1) 1.2565; More…
GBP/USD formed a temporary top at 1.2556 and intraday bias is turned neutral first. Rebound from 1.1946 could extend higher to 55 days EMA (now at 1.2674) and above. At this point, we’d expect strong resistance from 1.3444 (50% retracement of 1.5016 to 1.1946 at 1.3481) to limit upside. On the downside, break of 1.2088 support will suggest that such rebound is completed and turn bias to the downside for 1.1946 low.
In the bigger picture, the down trend from 2005 high of 2.1161 is still in progress and met 61.8% projection of 2.1161 to 1.3503 from 1.7190 at 1.2457 already. Oversold condition in both weekly and monthly RSI suggests a bounce is due. However, there is no clear sign of bottoming yet. And sustained trading below 1.2457 could pave the way to 100% projection at 0.9532. Overall, break of 1.3444 resistance is needed to confirm medium term bottoming. Otherwise, outlook will remain bearish.
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GBP/USD Daily Outlook
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