GBP/USD Daily Analysis
Range trading continues in GBP/USD and intraday bias remains neutral. Outlook stays bearish as long as the 1.2666 resistance holds. On the downside, the break of 1.1932 will resume a larger downtrend from 1.4248. However, a firm break of 1.2666 will suggest medium-term bottoming and bring a stronger rebound back towards 1.3158 support turned resistance.
In the bigger picture, a fall from 1.4248 (2018 high) could be a leg inside the pattern from 1.1409 (2020 low) or resuming the longer-term downtrend. A deeper decline is expected as long as the 1.2666 resistance holds. The next target is 1.1409 low. However, a firm break of 1.2666 will bring a stronger rise back to 55 weeks EMA (now at 1.3175).