GBP/USD Mid-Day Outlook
Daily Pivots: (S1) 1.9725; (P) 1.9850; (R1) 1.9927;
Cable falls further today and the touching of 1.9689 support turns outlook mixed. At this point, further decline could still be seen as long as 1.9817 minor resistance holds. Firm break of 1.9689 support will dampen the view that choppy fall from 2.0391 has completed as falling wedge at 1.9599 and focus will be put back to this support. On the upside, though, above 1.9817 will turn intraday outlook neutral first and the outlook will be reassessed after cable stabilizes.
In the bigger picture, down trend from 2.1161 have made a low at 1.9337. Consolidation from there is still in progress and such down trend is still expected to resume as long as 61.8% retracement of 2.1161 to 1.9337 at 2.0464 holds. Nevertheless, the path of this consolidation is in doubt. On the downside, break of 1.9599 will revive the case that rise from 1.9337 has completed with three waves up to 2.0391 and will encourage retest this low. Meanwhile on the upside, above 1.9997 will argue that the rebound from 1.9337 is going to extend to test 2.0464 fibo resistance before completion.