GBPUSD Outlook

GBP/USD fell to 1.3507 last week but recovered since then. Initial bias remains neutral this week first. Deeper fall cannot be ruled out, but downside should be contained by 55 D EMA (now at 1.3479) to complete the corrective pullback from 1.3867. On the upside, break of 1.3732 resistance will bring retest of 1.3867 high. Firm break there will resume larger up trend to 1.4284 key resistance. However, sustained break of 55 D EMA will raise the chance of bearish trend reversal.

In the bigger picture, rise from 1.0351 (2022 low) still in progress and should target 1.4284 key resistance (2021 high). Decisive break there will add to the case of long term bullish trend reversal. For now, outlook will stay bullish as long as 1.3008 support holds, even in case of deep pullback.

In the long term picture, as long as 1.4248/4480 resistance zone holds (38.2% retracement of 2.1161 to 1.0351 at 1.4480), the long term outlook will remain bearish. That is, price actions from 1.3051 are seen as a corrective pattern to down trend from 2.1161 (2007 high) only. Nevertheless, decisive break of 1.4248/4480 will be a strong sign of long term bullish reversal.

Daily Pivots: (S1) 1.3472; (P) 1.3575; (R1) 1.3631; More...

GBP/USD recovered after dipping to 1.3507 and intraday bias it turned neutral again. On the downside, below 1.3507 will resume the fall from 1.3867 to 55 D EMA (now at 1.3483). Sustained break there will raise the chance of larger scale correction, and target 1.3342 support for confirmation. On the upside, above 1.3732 minor resistance will bring retest of 1.3867. Firm break there will resume larger up trend towards 1.4284 key resistance.

In the bigger picture, rise from 1.0351 (2022 low) is resuming by breaking through 1.3787 high. Further rally should be seen to 1.4284 key resistance (2021 high). Decisive break there will add to the case of long term bullish trend reversal. For now, outlook will stay bullish as long as 1.3008 support holds, even in case of deep pullback.

Daily Pivots: (S1) 1.3472; (P) 1.3575; (R1) 1.3631; More...

Intraday bias in GBP/USD remains on the downside at this point. Fall from 1.3867 is in progress for 55 D EMA (now at 1.3483). Sustained break there will raise the chance of larger scale correction, and target 1.3342 support for confirmation. On the upside, above 1.3732 minor resistance will bring retest of 1.3867. Firm break there will resume larger up trend towards 1.4284 key resistance.

In the bigger picture, rise from 1.0351 (2022 low) is resuming by breaking through 1.3787 high. Further rally should be seen to 1.4284 key resistance (2021 high). Decisive break there will add to the case of long term bullish trend reversal. For now, outlook will stay bullish as long as 1.3008 support holds, even in case of deep pullback.