GBP/USD Daily Analysis
The break of 1.2342 suggests that the uptrend from 1.1801 is resuming, and the intraday bias is now bullish towards the 1.2445/6 resistance zone. A decisive break above this level will confirm a larger rally from 1.0351, targeting the 1.2759 Fibonacci level. The near-term outlook is positive as long as the 1.2177 support level holds, even if there is a temporary retreat.
In the bigger picture, the price action from 1.2445 is viewed as a correction to the rise from the medium-term bottom at 1.0351 (in 2022). It is expected that the rally from 1.0351 will resume, and a break of 1.2446 will target the 61.8% retracement of the move from the 2021 high at 1.4248 to the 2022 low at 1.0351, which is at 1.2759. This scenario will remain favored as long as the 38.2% retracement of the move from 1.0351 to 1.2445, which is at 1.1645, holds.