Detailed FX Market Outlook and Analysis

GBP/USD Daily Analysis 24-FEB-2023

GBP/USD Daily Analysis

GBP/USD remains in a range trading phase, with the intraday bias staying neutral. A potential decline is likely to occur if the resistance level of 1.2269 remains intact. On the downside, a break of the support level of 1.1914 will continue the fall from 1.2446, forming the third leg of the corrective pattern from 1.2445 to 1.1840 support and possibly even lower. However, a firm break of the resistance level at 1.2269 will result in a retest of the resistance levels at 1.2445/6.

Looking at the bigger picture, the rise from the medium-term bottom of 1.0351 is seen as a correction of the entire downtrend from 1.4248 (2021 high). Further increases are expected as long as the resistance-turned-support level of 1.1644 holds. The next target is the 61.8% retracement level of 1.4248 to 1.0351 at 1.2759. A sustained break above this level will pave the way back to 1.4248.

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