Detailed FX Market Outlook and Analysis

Daily Forex Analysis – GBP/USD – 12-July-2023

Forex Analysis

GBP/USD Daily Forex Analysis

Focusing our daily forex analysis on the USD/CHF pair, the potential for further decline is in the picture. However, the presence of a robust support level at 0.8760 is likely to curtail any substantial downside. Looking towards the upside, a breakthrough of the 0.8904 resistance – previously support – might shift the intraday outlook back toward a potential rebound. Notwithstanding, a pronounced break beneath 0.8760 would have significant bearish implications.

Shifting our daily analysis to the EUR/USD pair, we observe a continuing rally with the intraday bias leaning toward the upside. The current rally originating from 1.0638 is poised to retest the 1.1098 high. A clear break at this level will rejuvenate the larger upward trend from 0.9538 towards the 1.1277 Fibonacci level. On the downside, any fall below the minor support at 1.0980 will temporarily neutralize the intraday bias. Yet, as long as the 1.0838 support holds, the potential for a further rally remains.

In the broader perspective, the ongoing rise from 0.9538 (the low of 2022) should continue as long as the 1.0519 support level holds. A sustained break of the 61.8% retracement of 1.2352 (the high of 2021) to 0.9538 at 1.1277 would bolster the case for a bullish trend reversal, setting the target at the 1.2352 resistance level (the high of 2021).

GBP/USD Daily Analysis Summary

In summary, while the USD/CHF shows potential for further decline, strong support at 0.8760 may limit the downside. A decisive break below this level would have bearish implications. For EUR/USD, the current rally could retest 1.1098 high. Any fall below 1.0980 will neutralize the intraday bias, but a further rally is likely if the 1.0838 support holds.

Key takeaways

  1. USD/CHF intraday outlook suggests a potential further decline, but support at 0.8760 may limit the downside.
  2. EUR/USD’s intraday analysis sees a continuation of the rally, with the potential to retest the 1.1098 high.
  3. In the longer term, a sustained break of 1.1277 for EUR/USD would bolster the case for a bullish trend reversal

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