GBP/USD Daily Analysis
The GBP/USD has experienced a break of its resistance-turned-support level at 1.1914, indicating a short-term bottoming at 1.1801 following the previous breach of the 1.1840 support level. This development has resulted in an intraday bias towards an upward trend, targeting the 55-day EMA which currently stands at 1.2052. If a sustained break above this level occurs, there may be a retest of the 1.2446 high. However, if there is a break of the 1.1801 support level, it may result in a resumption of the decline towards the 38.2% retracement level of the range from 1.0351 to 1.2446, which stands at 1.1646.
Looking at the bigger picture, the failure to sustain below the 1.1840 support level suggests that the price actions from 1.2445 are merely a consolidation pattern and that the rise from 1.0351 is not yet over. A break of the 1.2446 level may indicate a target of the 61.8% retracement level of the range from the 2021 high of 1.4248 to 1.0351, which stands at 1.2759. However, if there is a decisive break of the 1.1840 support level, it could lead to a deeper correction towards the 38.2% retracement level of the range from 1.0351 to 1.2446 at 1.1646, or even further down to the 61.8% retracement level at 1.1151.
