GBP/USD Analysis
GBP/USD is currently in consolidation below 1.2797, maintaining a neutral intraday bias. Although the potential for a deeper retreat exists, the overall outlook remains cautiously bullish, contingent upon the resilience of the 1.2503 support level. A decisive break above 1.2797 would signify a continuation of the rally from 1.2032, targeting the next level at 1.2913, representing the 61.8% projection of the move from 1.2072 to 1.2735 originating from 1.2503.
Examining the broader picture, the price actions unfolding from the medium-term top at 1.3145 are interpreted as a corrective pattern within the context of the ascent from 1.0355, recorded as the 2022 low. The ongoing rise from 1.2036 is identified as the second leg of this pattern. While further upside is conceivable, it is expected to be capped at 1.3145, paving the way for the emergence of the third leg of the pattern. Conversely, a breach of the 1.2503 support level would suggest the commencement of the third leg, targeting the 38.2% retracement level of the move from 1.0355 (2022 low) to 1.3145 at 1.2080.
Analysis Summary
GBP/USD Maintains Neutral Bias Amid Consolidation; Cautiously Bullish Outlook Hinges on 1.2503 Support. The analysis anticipates potential upside, provided 1.2503 support holds, with a breakout above 1.2797 indicating a renewed upward trajectory towards 1.2913.
Key Points
- GBP/USD consolidates below 1.2797, maintaining a neutral intraday bias.
- Cautiously bullish outlook contingent on the support at 1.2503.
- A break above 1.2797 would signal a resumption of the rally towards 1.2913.
