Detailed FX Market Outlook and Analysis

GBP/USD Daily Analysis 06-MAY-2022

GBP/USD Daily Analysis

Intraday bias in GBP/USD remains on the downside for a 161.8% projection of 1.3641 to 1.2999 from 1.3297 at 1.2258. The break will target a 200% projection at 1.2013 next. On the upside, the break of 1.2637 resistance is needed to indicate short-term bottoming. Otherwise, the outlook will remain bearish in case of recovery.

In the bigger picture, the rise from 1.1409 (2020 low) has completed at 1.4248, ahead of 1.4376 long-term resistance (2018 high). Based on current momentum, a fall from 1.4248 is probably the start of a long-term downtrend. The break of 61.8% retracement of 2.1161 to 1.1409 at 1.2493 is affirming this bearish case too. For now, a deeper decline would be seen as long as 1.3158 support turned resistance holds. The next target is 1.1409 low.

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