GBP/USD Daily Analysis
The GBP/USD currency pair has continued its upward momentum, although it remains within the 1.2343/2545 range. Consequently, the intraday bias is neutral at present. While a further rise is plausible with the 1.2343 support level intact, a firm break of this level will confirm short-term topping and lead to a deeper pullback. The 4H MACD signals a bearish divergence condition, supporting this outlook.
However, if the price breaks above 1.2545, the next target will be the 1.2759 Fibonacci level. A firm break above this level could trigger an upside acceleration towards the 61.8% projection of the move from 1.0351 to 1.2445 from 1.1801 at 1.3095.
From a larger perspective, the rise from the 2022 low of 1.0351 is still in progress, with the aim of reaching the 61.8% retracement of the move from the 2021 high of 1.4248 to 1.0351 at 1.2759. A sustained break above this level would strengthen the case for a long-term bullish trend reversal. This bullish outlook remains favored as long as the support level at 1.1801 holds, even in the event of a deep pullback. Traders and investors should carefully monitor the price movements and watch for potential breakouts above the range or below the support level to identify trading opportunities and adjust their positions accordingly.
