GBP/USD Daily Outlook.
Daily Pivots: (S1) 1.3398; (P) 1.3445; (R1) 1.3478;
GBP/USD’s fall resumed after brief consolidation and reaches as low as 1.3374 so far. Intraday bias is back on the downside for 50% retracement of 1.1946 to 1.4376 at 1.3161. On the upside, above 1.3490 minor resistance will turn intraday bias neutral and bring consolidation first, before staging another decline.
In the bigger picture, current development suggests that whole medium term rebound from 1.1936 (2016 low) has completed at 1.4376 already, with trend line broken, on bearish divergence condition in daily MACD, after rejection from 55 month EMA (now at 1.4249). 38.2% retracement of 1.1936 (2016 low) to 1.4376 at 1.3448 should now be firmly taken out. Next target will be 61.8% retracement at 1.2874 and below. Outlook will stay bearish as long as 55 day EMA (now at 1.3761) holds, even in case of strong rebound.
EUR/USD Daily Outlook
Daily Pivots: (S1) 1.1747; (P) 1.1788 (R1) 1.1820;
Intraday bias in EUR/USD remains neutral as it’s staying above 1.1716 for consolidation. Another rise cannot be ruled out. But in that case, upside should be limited by 1.1995 resistance to bring fall resumption. On the downside, sustained break of 38.2% retracement of 1.0339 to 1.2555 at 1.1708 will pave the way to 50% retracement at 1.1447 next.
In the bigger picture, current development suggests that EUR/USD was rejected by 38.2% retracement of 1.6039 (2008 high) to 1.0339 (2017 low) at 1.2516. And, a medium term top was formed at 1.2555 already. Decline from there should extend further. Break of 38.2% retracement of 1.0339 to 1.2555 at 1.1708 will pave the way to 61.8% retracement at 1.1186. For now, even in case of rebound, we won’t consider the fall from 1.2555 as finished as long as 55 day EMA (now at 1.2113) holds.
