GBP/USD Daily Outlook
Daily Pivots: (S1) 1.3435; (P) 1.3524; (R1) 1.3598;
GBP/USD breached 1.3459 but cannot break through 1.3448 fibonacci level and recovered. Though, decline from 1.4376 is considered to be resuming and intraday bias stays on the downside. Sustained break of 1.3448 will pave the way to next one at 1.2874. On the upside, break of 1.3607 resistance is needed to indicate short term bottoming. Otherwise, outlook will stay bearish in case of recovery.
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 1.4223). 38.2% retracement of 1.1936 (2016 low) to 1.4376 at 1.3448 was almost met. Break there will target 61.8% retracement at 1.2874 and below. Outlook will stay bearish as long as 55 day EMA (now at 1.3861) holds, even in case of strong rebound.
USD/CHF Daily Outlook
Daily Pivots: (S1) 0.9984; (P) 1.0013; (R1) 1.0043;
USD/CHF is staying in range below 1.0056 and intraday bias remains neutral. Consolidation from there could still extend. Break of 0.9956 will bring deeper pull back. But downside should be contained by trend line support (now at 0.9778) to bring rebound. On the upside, sustained break of 1.0037 will resume recent rise for 1.0342 key resistance next
In the bigger picture, medium term decline from 1.0342 has completed with three waves down to 0.9186. Rise from there is currently viewed as a leg inside the long term range pattern. Hence, while further rally would be seen, we’d be cautious on strong resistance from 1.0342 to limit upside. For now, further rise is expected as long as 38.2% retracement of 0.9186 to 1.0056 at 0.9724 holds.
