Detailed FX Market Outlook and Analysis

GBP/USD Daily Analysis 04-August-2022

GBP/USD Daily Analysis

GBP/USD is staying in the range below 1.2292 and intraday bias remains neutral first. Further rise could be seen as long as 1.2062 minor support holds. Above 1.2292 will target 1.2405 resistance first. Firm break there will target 1.2666 key resistance next. On the downside, however, the break of 1.2062 minor support will argue that the rebound from 1.1759 is over, and turn bias back to the downside for retesting the 1.1759 low instead.

In the bigger picture, a fall from 1.4248 (2018 high) could be a leg inside the pattern from 1.1409 (2020 low), or resuming the longer-term down trend. A deeper decline is expected as long as the 1.2666 resistance holds. The next target is 1.1409 low. However, a firm break of 1.2666 will bring a stronger rise back to 55 weeks EMA (now at 1.2957).

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