GBP/USD UPDATE AND INTRADAY ANALYSIS
The GBP/USD pair’s decline, initiated from 1.2682, has regained momentum after breaching the crucial support level at 1.2375. Consequently, the intraday bias has shifted in favor of an upward movement. It is important to note that the current downward phase is perceived as a corrective movement within the broader uptrend that originated from 1.0355. Traders and investors should prepare for a potential further decline, with the GBP/USD pair expected to approach the significant 1.1805 cluster support level. This level aligns with the 38.2% retracement of the upward swing from 1.0355 to 1.2682, highlighting its significance.
On the upside, if the GBP/USD pair manages to surpass the minor resistance level situated at 1.2472, it would temporarily alleviate the intraday bias, leading to a more sideways trading environment. Such a development could potentially introduce a period of consolidation and uncertainty as market participants reassess their positions.
Zooming out to a broader perspective, as long as the support level at 1.1805 remains unbroken, the rise from the medium-term bottom at 1.0355 is anticipated to persist and extend further. Traders and investors will closely monitor whether the GBP/USD pair can achieve a sustained breakthrough above the 61.8% retracement level of the decline from 1.4252 to 1.0355, which is located at 1.2763. Such a breakthrough would significantly bolster the case for a long-term bullish trend reversal, indicating a potential shift in favor of the British pound. However, should the GBP/USD pair convincingly breach the support level at 1.1805, it would signify a rejection by the 1.2763 level and could trigger a more pronounced downward movement. This decline might even manifest as a corrective phase within the broader trend, leading to further bearish sentiment.