GBP/USD Daily Outlook

Daily Pivots: (S1) 1.2718; (P) 1.2753; (R1) 1.2820; More…

GBP/USD’s rebound from 1.2666 extended higher but stays below 1.2822. Intraday bias remains neutral first. On the downside, break of 1.2666 support and sustained break of 55 D EMA (now at 1.2685) will target 1.2517 structural support next. However, break of 1.2822 will bring further rally to retest 1.2892 instead.

In the bigger picture, price actions from 1.3141 medium term top are seen as a corrective pattern to up trend from 1.0351 (2022 low). Rise from 1.2036 is seen as the second leg, which is still in progress. But upside should be limited by 1.3141 to bring the third leg of the pattern. Meanwhile, break of 1.2517 support will argue that the third leg has already started for 38.2% retracement of 1.0351 (2022 low) to 1.3141 at 1.2075 again.

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