Detailed FX Market Outlook and Analysis

Daily Forex Analysis – GBP/USD- 19-July-2023

GBP/USD Daily Forex Analysis

The GBP/USD Daily Forex Analysis shows that the retracement from 1.3145 has intensified, paving the way for a potentially deeper decline. However, the near-term outlook remains optimistic provided the 1.2851 resistance-turned-support holds firm. A surge beyond the minor resistance at 1.3052 will pivot the bias back to the upside, eyeing a retest of the 1.3145 high. Nevertheless, a decisive break below 1.2851 may signify that a larger correction is in motion, with 1.2593 acting as the subsequent support.

From our wider perspective, we’re observing that the rise from the medium-term bottom of 1.0355 (established in 2022) is progressing. The next target within our Daily Analysis scope is the 100% projection of 1.0355 to 1.2449 from 1.1805, situated at 1.3899. A breach here would place the key long-term resistance of 1.4252 (the 2021 peak) firmly in our sights. This scenario will remain our favored forecast as long as the 1.2682 resistance-turned-support is preserved.

GBP/USD Daily Analysis Summary

The pullback in GBP/USD from 1.3145 could indicate a deeper decline, but optimism persists as long as 1.2851 remains unbroken. A decisive breach of this level may trigger a larger correction with 1.2593 as the next target.

Key Points:

  • The GBP/USD pullback from 1.3145 is accelerating, but the near-term bullish outlook remains intact provided 1.2851 support holds.
  • A break above 1.3052 minor resistance will reorient the bias back to the upside for a retest of 1.3145.
  • A decisive break of 1.2851 could signal a larger correction targeting 1.2593.

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