GBP/USD Daily Outlook 03-April-2023

GBP/USD Intraday Outlook and Analysis

The pullback in GBP/USD from 1.2424 continues today, though it remains above the 1.2206 resistance-turned-support level. The intraday bias currently holds a neutral position, with a further rally anticipated. On the upside, a decisive breach of the 1.2448/9 resistance zone will reignite the broader rally from 1.0354, targeting the 1.2762 Fibonacci level. However, breaking the 1.2206 resistance-turned-support level will prolong the corrective pattern from 1.2448 with another declining leg, shifting the bias towards the downside.

From a larger perspective, the ascent from the 1.0354 medium-term bottom (2022 low) aims for the 61.8% retracement of the range from 1.4251 (2021 high) to 1.0354 at 1.2762. A sustained break at this level will bolster the case for a long-term bullish trend reversal. Moreover, breaking the 61.8% projection of the range from 1.0354 to 1.2448 from 1.1804 at 1.3098 could trigger an upside acceleration towards the 100% projection at 1.3898. For the time being, this scenario remains favorable as long as the 1.1804 support holds, even in the event of a deep pullback.