GBP/USD DAILY REPORT
Daily Pivots: (S1) 1.9625; (P) 1.9673; (R1) 1.9744;
Cable's rise from 1.9261 resumes and strengthens to as high as 1.9742 so far. At this point, further rally is expected to follow towards 1.9750 resistance. As discussed before, break of 1.9750 will encourage further rise towards 1.9846 high.
On the downside, below 1.9675 will argue that a short term top is formed, probably with bearish divergence condition in 4 hours MACD too. Focus will then shift to 1.9587 support. Touching of 1.9587 will confirm that a short term top is formed and should bring lengthier consolidation. But even in such case, downside is expected to be above 1.9452 resistance turned support and bring rally resumption.
In the bigger picture, correction from 1.9846 has completed after three waves down to 1.9261. Break of 1.9846 high will confirm that rally from 1.8517 has resumed for next upside target of 138.2% projection of 1.8090 to 1.9142 from 1.8517 at 1.9917. However, close attention will be paid to sign of loss of upside momentum and reversal pattern formation as cable approaches key cluster resistance of 2.0106 (1992 high, 100% projection of 17047 to 1.9024 from 1.8090 at 2.0067).
On the downside, it will take a break below 1.9452 support will argue that the whole rise from 1.9261 has completed and shift short term focus back to the downside.