Wed, Dec 07, 2022 @ 01:02 GMT

GBP/USD Weekly Outlook

GBP/USD’s down trend accelerated to as low as 1.0837 last week and there is no sign of bottoming yet. Break of the near term channel support indicates downside acceleration. Next target is 1.0675 long term projection level, and then 100% projection of 1.3748 to 1.1759 from 1.2292 at 1.0303. On the upside, above 1.1095 minor resistance will turn intraday bias neutral and bring consolidations first, before staging another decline.

In the bigger picture, fall from 1.4248 (2018 high) is resuming long term down trend from 2.1161 (2007 high). Next target is 61.8% projection of 1.7190 (2014 high) to 1.1409 (2020 low) from 1.4248 (2021 high) at 1.0675. Firm break there will target parity. This will remain the favored case for now as long as 1.2292 resistance holds.

In the longer term picture, long term down trend from 2.1161 (2007) high is still in progress. Next target is 100% projection of 2.1161 to 1.3503 from 1.7190 at 0.9532.

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