Daily Forex Analysis GBP/USD
The current intraday sentiment for the GBP/USD currency pairing is neutral. A robust rebound of the 55 4H EMA, which is now placed at 1.2250, is likely to sustain short-term bullish sentiment, setting the stage for an advance toward the 38.2% Fibonacci retracement mark of the 1.3145 to 1.2040 range, landing at 1.2462. Nevertheless, a consistent decline below the 55 4H EMA could signal a resurgence of bearish pressure, potentially leading to a reevaluation of the 1.2040 low.
Expanding our view to a more comprehensive timescale, the noteworthy bounce from the 38.2% Fibonacci retracement of the broader 1.0355 to 1.3145 rally at 1.2079 indicates that the price activity from the 2022 high of 1.3145 is a corrective phase in the larger uptrend from the 2022 trough of 1.0355. The upward movement from 1.2040 is currently perceived as the intermediary stage of this broader pattern. While the near-term outlook favours additional gains, any upward journey is expected to encounter a ceiling at 1.3145, which would likely herald the onset of the next corrective wave.
Analysis Summary
GBP/USD is hovering in a neutral zone with the potential for an upswing as long as it remains above the 55 4H Exponential Moving Average. However, this potential rise seems capped by the 2022 high, suggesting a limited bullish window before the pattern’s next downward correction unfolds.
Key Points
- Neutral intraday outlook with a tilt towards bullishness above 1.2250.
- Upside potential targets the 1.2462 Fibonacci level.
- A drop below the 55 4H EMA could signal a retest of the 1.2040 base.
