GBP/USD Daily Outlook
Daily Pivots: (S1) 1.4023; (P) 1.4056; (R1) 1.4091;
No change in GBP/USD’s outlook as it’s bounded in tight range above 1.4008 temporary low. On the downside, firm break of 1.3982 will indicate completion of the rise from 1.3711. In that case, intraday bias will be turned back to the downside for retesting 1.3711. Nonetheless, strong rebound from 1.3982, followed by break of 1.4243 will target 1.4345 resistance. Decisive break there will resume larger up trend and target 61.8% projection of 1.3038 to 1.4345 from 1.3711 at 1.4519 next
In the bigger picture, as long as 1.3038 support holds, medium term outlook in GBP/USD will remains bullish. Rise from 1.1946 is at least correcting the long term down from 2007 high at 2.1161. Further rally would be seen back to 38.2% retracement of 2.1161 (2007 high) to 1.1946 (2016 low) at 1.5466. However, GBP/USD fails to sustain above 55 month EMA (now at 1.4259) so far. Break of 1.3038 support, will suggest that rise from 1.1946 has completed and will turn outlook bearish for retesting this low.
USD/CHF Daily Outlook
Daily Pivots: (S1) 0.9547; (P) 0.9572; (R1) 0.9611;
Intraday bias in USD/CHF stays mildly on the upside. The choppy rebound from 0.9186 is extending. But still, we’d be cautious on strong resistance from 0.9626 key fibonacci level to limit upside. On the downside, below 0.9521 will turn intraday bias back to the downside for 0.9432 support. Break there will indicate near term reversal and completion of rebound from 0.9186. However, sustained break of 0.9626 will be another evidence of larger reversal. In this case, further rise would be seen to next fibonacci level at 0.9900.
In the bigger picture, fall from 1.0342 is seen as a medium term down trend. Main focus is on 38.2% retracement of 1.0342 (2016 high) to 0.9186 (2018 low) at 0.9626. Sustained break there will add to the case of trend reversal and target 61.8% retracement at 0.9900 and above). However, rejection from 0.9626 will maintain medium term bearishness for another low below 0.9186.
