USD/CHF Daily Outlook
Daily Pivots: (S1) 0.9568; (P) 0.9590; (R1) 0.9628;
USD/CHF’s rebound from 0.9186 extends today and reaches as high as 0.9629 so far. It’s now pressing 0.9626 key fibonacci level. For now, we’s still seeing the rebound as a corrective move. Hence, strong resistance should be seen at 0.9262 to bring reversal. On the downside, break of 0.9521 will turn 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.
GBP/USD Daily Outlook
Daily Pivots: (S1) 1.4029; (P) 1.4062; (R1) 1.4112;
Intraday bias in GBP./USD is staying neutral as it’s bounded in sideway trading above 1.4008 temporary low. On the downside, firm break of 1.3982 support 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 1.4095 minor resistance will turn bias to the upside for 1.4243. Break will resume the rally from 1.3711 for 1.4345 high first.
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.
