Detailed FX Market Outlook and Analysis

GBP/USD Daily Analysis 16-DEC-2022

GBP/USD Daily Analysis

A short-term top is formed at 1.2445 in GBP/USD on a bearish divergence condition in a 4-hour MACD. Intraday bias is back on the downside for 55-day EMA (now at 1.1865). The firm break will target a 38.2% retracement of 1.0351 to 1.2445 at 1.1645. For now, risk will stay on the downside as long as the 1.2445 resistance holds in case of recovery.

In the bigger picture, the rise from the 1.0351 medium-term bottoms is at least correcting whole 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 1.1860) holds.


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