GBP/USD Daily Outlook

(actionforex) Intraday bias in GBP/USD remains neutral for consolidation above 1.6051 temporary low. Upside of recovery should be limited below 1.6534 support turned resistance and bring fall resumption. Below 1.6051 will target 50% retracement of 1.4813 to 1.7190 at 1.6002. Break will target 61.8% retracement at 1.5721.

In the bigger picture, price actions from 1.3503 (2009 low) are treated as consolidations to long term down trend from 2.1161. The current development, with medium term top formed at 1.7190, argues that such consolidation is possibly completed, just below 50% retracement from 2.1161 to 1.3503 at 1.7332. The firm break of 55 weeks EMA affirmed this bearish case and GBP/USD is now heading back to 1.4813 key support level.