Detailed FX Market Outlook and Analysis

GBP/USD Daily Analysis 16-MAR-2023

GBP/USD Daily Analysis

The intraday bias for GBP/USD is currently neutral. If the price rises above 1.2203, it will continue the rally from the 1.2445/6 resistance zone. However, if the price decisively breaks below 1.2045 and the 4-hour 55 EMA (currently at 1.2042), it suggests that the pattern from 1.2445 is extending with another falling leg, which would turn the bias to the downside towards 1.1801.

Looking at the bigger picture, the price action from 1.2445 is viewed as a corrective pattern to the rise from the 2022 low of 1.0351. Resumption of the uptrend is expected at a later stage, and a firm break of 1.2446 will target the 61.8% retracement of 1.4248 (2021 high) to 1.0351 at 1.2759. This will remain the favored case as long as the 38.2% retracement of 1.0351 to 1.2445 at 1.1645 holds.

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