Daily Forex Analysis – GBP/USD
The intraday bias within the GBP/USD pair continues to exhibit a neutral stance as the consolidation originating from 1.2030 persists. Scrutiny towards the downside delineates that a decisive severance of the 1.2040 mark could potentially accelerate the ongoing descent from 1.3145, subsequently targeting the 1.1805 support level. On the flip side, transcending the 1.2340 threshold could rekindle the upward correction from 1.2040, setting sights on the 55 Day Exponential Moving Average (DEMA), presently anchored at 1.2387.
Venturing into a wider lens, the depreciation from the 1.3145 medium-term pinnacle could possibly represent a corrective phase to the bullish trajectory initiated at 1.0355, the nadir of 2022. However, the odds for a full-fledged trend inversion are upward. A sustained severance of the 38.2% retracement level, resting at 1.2079, from the rise of 1.0355 to 1.3145, could carve a pathway towards the 61.8% retracement level at 1.1421. As it stands, downside risk remains a dominant theme as long as the 55 DEMA (now at 1.2387) retains its position, especially in the event of a rebound.
Analysis Summary
The GBP/USD pair showcases a neutral intraday bias amidst ongoing consolidation from 1.2030. The juxtaposition between the potential continuation of the downward movement from 1.3145 and the prospect of an upward correction hinges largely on key retracement levels and the 55 DEMA at 1.2387.
Key Points
- Continuation of consolidation from 1.2030
- Key retracement levels at 1.2079 and 1.1421
- Dominant downside risk with 55 DEMA at 1.2387
