The GBP/USD currency pair continues its upward trajectory, with the intraday bias firmly anchored on the upside. The 4-hour MACD indicator shows a resurgence in momentum, signaling a strengthening rally. A significant milestone for this rally would be a sustained position above the 61.8% retracement level, which has shifted from 1.3145 to 1.2040, now at 1.2720. Achieving this would set the stage for a retest of the 1.3145 high. However, a drop below the minor support level of 1.2610 would neutralize the bullish bias, leading to initial consolidations. Nonetheless, the outlook for a continued rally remains favorable as long as the pair holds above the resistance-turned-support level at 1.2430.
From a broader perspective, the price movements from the 1.3145 mark are interpreted within the context of a correction to the rise from the 2022 low of 1.0355. The strong rebound from the 38.2% retracement of this range, spanning from 1.0355 to 1.3145, at 1.2079, suggests that the current ascent from 1.2040 is likely the second phase of this pattern. However, while further upward movement is plausible, the climb is expected to face a ceiling at 1.3145, potentially initiating the third phase of this corrective pattern.
Analysis Summary
GBP/USD indicates a potential consolidation phase if it falls below 1.2610 but maintains an overall positive outlook as long as support at 1.2430 holds, fitting within a broader corrective pattern from the 2022 low.
Key Points
- The rally gaining momentum, eyeing the 1.2720 level.
- Potential consolidation if it dips below 1.2610.
- Continued rally likely, supported by the 1.2430 level.
