Detailed FX Market Outlook and Analysis

GBP/USD Daily Analysis 17-April-2023

GBP/USD Daily Analysis

The GBP/USD intraday bias is currently neutral for consolidations below 1.2545, but the outlook remains bullish as long as the support at 1.2343 holds. A break above 1.2545 would target the Fibonacci level of 1.2759, with a firm break leading to a projection of 1.3095. However, there is a bearish divergence condition in the 4H MACD, so a firm break of 1.2343 would confirm a short-term topping and turn the bias to the downside for a deeper pullback.

Looking at the bigger picture, the rise from the 2022 low of 1.0351 is in progress towards the 61.8% retracement level of 1.4248 (2021 high) to 1.0351 at 1.2759. A sustained break at this level would indicate a long-term bullish trend reversal, with further acceleration to 100% projection at 1.3895 if there is a further break of the 61.8% projection of 1.0351 to 1.2445 from 1.1801 at 1.3095. As long as the support at 1.1801 holds, this remains the favored case, even in the event of a deep pullback.

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