GBP/USD Daily Outlook

Daily Pivots: (S1) 1.2554; (P) 1.2584; (R1) 1.2622; More…

Intraday bias in GBP/USD is turned neutral with current recovery. Risk will stay on the downside as long as 1.2731 resistance holds. Below 1.3543 will resume the fall from 1.2731 to 55 D EMA (now at 1.2437). Nevertheless, firm break of 1.2731 will resume the rise from 1.2036 to retest 1.3141 high instead.

In the bigger picture, price actions from 1.3141 are seen as a corrective pattern to rise from 1.0351 (2022 low). Strong rebound from 38.2% retracement of 1.0351 (2022 low) to 1.3141 at 1.2075 suggests that current rise from 1.2036 is already the second leg. However, while further rally could be seen, upside should be limited by 1.3141 to bring the third leg of the pattern.

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