Detailed FX Market Outlook and Analysis

GBP/USD Daily Analysis 06-MAR-2023

GBP/USD Daily Analysis

The current intraday bias in GBP/USD remains neutral as the market continues to trade sideways. If there is a break of the 1.1914 support level, it will resume the decline from 1.2446 as the third leg of the corrective pattern from 1.2445, with a target of 1.1840 support and possibly lower. On the upside, a break of 1.2142 resistance will turn the bias back to the upside, with a target of further rebound to 1.2269 and above.

In the bigger picture, as long as the 1.1840 support level holds, the rise from the 2022 low of 1.0351 medium-term bottom should continue to the 61.8% retracement level of 1.4248 (2021 high) to 1.0351, which is at 1.2759. However, a decisive break of 1.1840 would complete a double top pattern (1.2445, 1.2446) after being rejected by the 55-week EMA, which is now at 1.2243. A deeper decline should then be expected back to the 38.2% retracement level of 1.0351 to 1.2445 at 1.1645.

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