[m.youssif]

GBP/USD dives to as low as 1.6166 but drew support from mentioned 50% retracement of 1.5935 to 1.6426 at 1.6181 and recovered quickly. Outlook remains unchanged as we'd still treat price actions from 1.6426 as consolidations only. Intraday bias remains neutral first. Break of 1.6382 will suggest that recent rally is resuming for 1.6426 and then 61.8% projection of 1.5343 to 1.6400 from 1.5935 at 1.6588. However, break of 1.6166 will now dampen this view and turn focus back to 1.5935 support instead.

In the bigger picture, price actions from 1.3503 (2009 low) are treated as consolidation to long term down trend from 2007 high of 2.1161. Rise from 1.4230 is treated as the third leg of such consolidation and with 1.5935 support intact, such rise could still continue for 1.7043 resistance. But after all, strong resistance should be seen between 1.7043 and 50% retracement of 2.1161 to 1.3503 at 1.7332 to limit upside. On the downside, break of 1.4230 support will be the first signal of down trend resumption and will turn focus to 1.3503 low for confirmation.

[m.youssif]

GBP/USD dives to as low as 1.6166 but drew support from mentioned 50% retracement of 1.5935 to 1.6426 at 1.6181 and recovered quickly. Outlook remains unchanged as we'd still treat price actions from 1.6426 as consolidations only. Intraday bias remains neutral first. Break of 1.6382 will suggest that recent rally is resuming for 1.6426 and then 61.8% projection of 1.5343 to 1.6400 from 1.5935 at 1.6588. However, break of 1.6166 will now dampen this view and turn focus back to 1.5935 support instead.

In the bigger picture, price actions from 1.3503 (2009 low) are treated as consolidation to long term down trend from 2007 high of 2.1161. Rise from 1.4230 is treated as the third leg of such consolidation and with 1.5935 support intact, such rise could still continue for 1.7043 resistance. But after all, strong resistance should be seen between 1.7043 and 50% retracement of 2.1161 to 1.3503 at 1.7332 to limit upside. On the downside, break of 1.4230 support will be the first signal of down trend resumption and will turn focus to 1.3503 low for confirmation.