Detailed FX Market Outlook and Analysis

GBP/USD Daily Analysis 24-MAR-2023

GBP/USD Daily Analysis

The GBP/USD intraday bias has turned neutral again due to the current retreat. As long as the minor support level of 1.2177 holds, there is an expectation for a further rise. If the price goes above the resistance zone of 1.2342, the target will be 1.2455/6. A decisive break there will resume the larger rise from 1.0351, with a target of the 1.2759 Fibonacci level. On the downside, if the minor support level of 1.2177 is broken, it will suggest that the corrective pattern from 1.2445 is extending with another falling leg, and the bias will turn downwards for a 1.2009 support level instead.

Looking at the bigger picture, the price action from 1.2445 is seen as a corrective pattern for the rise from the medium-term bottom of 1.0351 (2022 low). There is an expectation for the resumption of the rally from 1.0351, and if there is a break of 1.2446, the target will be the 61.8% retracement of 1.4248 (2021 high) to 1.0351, which is at 1.2759. This will remain the favored scenario as long as the 38.2% retracement of 1.0351 to 1.2445, at 1.1645, holds.

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