Daily Pivots: (S1) 1.2292; (P) 1.2327; (R1) 1.2351; More…
GBP/USD is losing some upside momentum as seen in 4 hour MACD. But further rally is expected as long as 1.2189 support holds, to 1.2445/6 resistance zone. Firm break there will resume larger rally from 1.0351, and target 1.2759 fibonacci level. However, break of 1.2189 will turn bias to the downside to extend the corrective pattern from 1.2445 with another falling leg.
In the bigger picture, price action from 1.2445 are seen as a corrective pattern to rise from 1.0351 medium term bottom (2022 low). Resumption of the rally from 1.0351 is expected and break of 1.2446 will target 61.8% retracement of 1.4248 (2021 high) to 1.0351 at 1.2759. This will remain the favored case as long as 38.2% retracement of 1.0351 to 1.2445 at 1.1645 holds.
