Detailed FX Market Outlook and Analysis

GBP/USD Resumes Rally Targeting 1.2909

GBP/USD Analysis

GBP/USD Analysis

The resurgence in GBP/USD’s upward momentum, stemming from the low of 1.2036, is evident as it successfully surpasses the resistance at 1.2793. This development reinstates an intraday bias favoring further upside movement, with the subsequent target identified at the 61.8% projection level derived from the range of 1.2068 to 1.2731, originating from 1.2499, now projecting towards 1.2909. Any retracement on the downside would necessitate a breach below the minor support at 1.2698 to shift the intraday bias to a neutral stance. However, the overall bullish outlook prevails as long as the support at 1.2499 remains intact amid a potential retreat.

The price actions unfolding since the medium-term peak at 1.3141 are interpreted as a corrective pattern, counterbalancing the ascent from the low of 1.0351 in 2022. The ongoing rise from 1.2036 is identified as the second leg within this corrective sequence. Anticipated constraints are expected around the 1.3141 level to set the stage for the commencement of the third leg of the corrective pattern. Conversely, a breach of the 1.2499 support would suggest an early initiation of the third leg, targeting the 38.2% retracement level at 1.2075, spanning from the 2022 low of 1.0351 to the medium-term peak at 1.3141.

Analysis Summary

GBP/USD’s upward surge gains momentum, targeting 1.2909, supported by the breach of 1.2793 resistance. In the larger context, a corrective pattern is unfolding, with the current rise viewed as the second leg. Maintaining support at 1.2499 is crucial for sustaining the bullish trajectory.

Key Points

  1. GBP/USD’s rally resumes, targeting 1.2909 after breaching 1.2793 resistance.
  2. A larger corrective pattern implies a limited upside to 1.3141, marking the second leg.
  3. Support at 1.2499 is crucial; a breach could signal early initiation of the third corrective leg.

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