The GBP/USD currency pair currently exhibits a consolidating trend, remaining under the 1.2561 threshold, with a neutral intraday outlook. Although a deeper pullback could occur, the potential for a further rally remains strong, contingent on the 1.2376 support level holding firm. Surpassing the 1.2561 mark would signify a continuation of the upward trend from 1.2040, setting sights on the 61.8% Fibonacci retracement level of 1.3145 to 1.2040, located at 1.2720.
The price movements since the high of 1.3145 are interpreted as a corrective phase following the significant rise from the 2022 low of 1.0355. The notable rebound from the 38.2% Fibonacci retracement level of this range, at 1.2079, lends credence to the idea that the current upward trend from 1.2040 is the second phase of this correction. While additional upward momentum is anticipated, it’s expected to be capped by the 1.3145 level, paving the way for the third phase of this pattern.
Analysis Summary
The GBP/USD pair is in a consolidation phase under 1.2561, with potential for a rally if the 1.2376 support holds. The current trend, part of a larger corrective pattern since the 2022 low, may see further gains but is likely to face resistance near 1.3145.
Key Points
- Consolidation under 1.2561 with a neutral bias.
- 1.2376 support key for a potential rally.
- Upward momentum likely capped by 1.3145.
