Wed, Feb 01, 2023 @ 05:43 GMT

GBP/USD Daily Outlook

Daily Pivots: (S1) 1.1981; (P) 1.2034; (R1) 1.2111; More

Intraday bias in GBP/USD remains neutral for the moment. On the downside, break of 1.1899 and sustained trading below 55 day EMA (now at 1.1938) will target 38.2% retracement of 1.0351 to 1.2445 at 1.1645 next. However, strong rebound from 55 day EMA, followed by break of 1.2124 resistance, will argue that the pull back from 1.2445 has completed, and turn bias back to the upside for retesting this high.

In the bigger picture, rise from 1.0351 medium term bottom is at least correcting whole down trend from 1.4248 (2021 high). Further rise is expected as long as 1.1644 resistance turned support holds. Next target is 61.8% retracement of 1.4248 to 1.0351 at 1.2759. Sustained break there will pave the way back to 1.4248. This will remain the favored case as long as 55 day EMA (now at 1.1916) holds.

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