Detailed FX Market Outlook and Analysis

GBP/USD Daily Analysis 05-JAN-2023

GBP/USD Daily Analysis

Intraday bias in GBP/USD remains neutral for the moment. On the downside, a break of 1.1899 and sustained trading below 55 days EMA (now at 1.1938) will target a 38.2% retracement of 1.0351 to 1.2445 at 1.1645 next. However, a strong rebound from 55 days EMA, followed by a break of 1.2124 resistance, will argue that the pullback from 1.2445 has been completed and turn bias back to the upside for retesting this high.


In the bigger picture, the rise from the 1.0351 medium-term bottoms is at least correcting the down trend from 1.4248 (2021 high). Further rise is expected as long as 1.1644 resistance turned support holds. The next target is a 61.8% retracement of 1.4248 to 1.0351 at 1.2759. A sustained break there will pave the way back to 1.4248. This will remain the favored case as long as the 55-day EMA (now at 1.1916) holds.

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