Detailed FX Market Outlook and Analysis

GBP/USD Daily Analysis 28-April-2023

GBP/USD Daily Analysis

The intraday bias for GBP/USD remains neutral as consolidation from 1.2545 continues. The outlook remains bullish with support at 1.2343 intact. If the price breaks above 1.2545, the next target will be the Fibonacci level of 1.2759. A strong break above this level will target the 61.8% projection of 1.0351 to 1.2445 from 1.1801 at 1.3095. However, the bearish divergence condition in the 4-hour MACD suggests that a firm break of 1.2343 will confirm a short-term topping and turn the bias back to the downside for a deeper pullback.

In the bigger picture, the rise from the medium-term bottom of 1.0351 (2022 low) is in progress towards the 61.8% retracement of 1.4248 (2021 high) to 1.0351 at 1.2759. If there is a sustained break above this level, it will further support the case for a long-term bullish trend reversal. A further break of the 61.8% projection of 1.0351 to 1.2445 from 1.1801 at 1.3095 could lead to an upside acceleration towards the 100% projection at 1.3895. For now, this scenario will remain favorable as long as the support level of 1.1801 holds, even in the case of a deep pullback.

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