Daily Forex Analysis – GBP/USD
The GBP/USD pair maintains a neutral intraday stance, oscillating below the temporary peak of 1.2508. The downside is expected to find support at the 55 4H EMA, currently at 1.2315, setting the stage for a potential rally. A break above 1.2508 would signify a continuation of the rebound from 1.2040. Notably, consistent trading above the 38.2% retracement mark of 1.3145 to 1.2040, positioned at 1.2462, could lead to reaching the 61.8% retracement at 1.2720.
Expanding the view, market activities since the high of 1.3145 are interpreted as a correction phase following the ascent from the 2022 low of 1.0355. A robust rebound from the 38.2% retracement of the 1.0355 (2022 low) to 1.3145 at 1.2079 suggests that the current rise from 1.2040 may be the second phase of this pattern. While further upward movement is anticipated, it is expected to be capped by 1.3145, leading to the emergence of the third phase of the corrective pattern.
Analysis Summary
GBP/USD remains neutral, supported by 55 4H EMA at 1.2315, with a potential rally on breaching 1.2508. Key retracement levels at 1.2462 and 1.2720 could define future movements. Long-term analysis indicates a corrective pattern, with the current rise possibly capped at 1.3145, heralding a third phase.
Key Points
- Support at 55 4H EMA (1.2315) for GBP/USD.
- A break above 1.2508 may lead to a rebound.
- Long-term view: capped rally, potential third corrective phase.
