GBP/USD Daily Outlook
Daily Pivots: (S1) 1.3544; (P) 1.3658; (R1) 1.3729;
GBP/USD reaches as low as 1.3579 so far and there is no sign of bottoming yet. Intraday bias remains on the downside and fall from 1.4376 should target 1.3448 fibonacci level next. On the upside, above 1.3665 minor resistance will turn intraday bias neutral first. Some consolidations could then be seen before 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 1.4248). Deeper decline should be seen to 38.2% retracement of 1.1936 (2016 low) to 1.4376 at 1.3448 first. Break will target 61.8% retracement at 1.2874 and below. Outlook will stay bearish as long as 55 day EMA (now at 1.3955) holds, even in case of strong rebound.
USD/CHF Daily Outlook
Daily Pivots: (S1) 0.9916; (P) 0.9943; (R1) 0.9992;
Intraday bias in USD/CHF remains on the upside and current rise from 0.9186 is in progress for 1.0037 resistance. Decisive break there will pave the way to key resistance level at 1.0342. On the downside, below 0.9919 minor support will turn intraday bias neutral again and bring consolidation, before staging another rise.
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 0.9648 resistance turned support holds, even in case of pull back.
