Detailed FX Market Outlook and Analysis

GBP/USD Daily Analysis 26-MAY-2023

Forexwick Daily update

GBP/USD Update and Intraday Analysis

In the daily analysis of GBP/USD, the currency pair experiences a mild recovery today; however, there is no clear indication of a bottoming pattern yet. The intraday outlook maintains a downside bias at the moment. The ongoing decline is viewed as a correction within the overall uptrend that originated from 1.0356. A deeper fall is anticipated, with the potential target being the cluster support at 1.1806 which corresponds to the 38.2% retracement level of the upswing from 1.0356 to 1.2683, situated at 1.1794. On the upside, a breach of the minor resistance at 1.2473 would first neutralize the intraday bias.

Expanding the perspective to the broader picture, as long as the support level at 1.1806 remains intact, the rise from the medium-term bottom at 1.0356  is expected to extend further. A sustained breakthrough of the 61.8% retracement level of the decline from the 2021 high at 1.4253 to 1.0356, specifically at 1.2764, would provide additional evidence for a long-term bullish trend reversal. However, a firm break of the 1.1806 support level would indicate a rejection near 1.2764 and potentially lead to a deeper decline, possibly as a correction.

GBP/USD Daily Analysis Summary

In summary, the daily update and intraday analysis of GBP/USD confirm a prevailing bearish bias, with a focus on key support levels. The ongoing decline suggests a potential continuation towards the 1.1806 support level, while a breakout above 1.2473 could temporarily shift the intraday bias to a more neutral stance. Traders and investors should closely monitor these levels for potential market movements and adjust their strategies accordingly.

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