GBP/USD Daily Analysis
Intraday bias in GBP/USD stays neutral as range trading continues. On the upside, a decisive break of 1.2292 resistance will complete a head and shoulder bottom pattern (ls: 1.1932; h: 1.1769; rs: 1.2002). The further rally should then be seen to 1.2666 key resistance next. On the downside, however, the break of 1.2002 will bring a deeper fall back to retest the 1.1759 low.
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 downtrend. 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 1.2897).